PrivateMI Helps Renter Find Great Deal in Great Neighborhood
Lauren, a 25-year-old looking for a job in social work, had never considered buying a home because she didn't believe she had enough money for a down payment. But when a rental deal for an apartment in West Hartford, Connecticut fell through, Lauren reconsidered her options about purchasing a home.
Lauren quickly found a second floor unit in a 1930s "Pre-War" building that featured high ceilings and beautiful hardwood floors. Because condo units in buildings like this are difficult to find, Lauren knew she had to act fast, even though she had not saved nearly enough for a 20 percent down payment needed for most traditional mortgages.
"The entire process of deciding to buy, finding the condo, and purchasing happened in three months. It was very quick," explained Lauren.
Luckily, Lauren's broker suggested she use PrivateMI to purchase the home with only a 5 percent down payment, which permitted her to buy a home sooner and for less money down than would have been possible otherwise.
In the end, Lauren's monthly mortgage payment, including the cost of PrivateMI, is less than she would have paid for rent on a similar unit.
Before moving to West Hartford, Lauren lived about 20 minutes away in a rural part of Connecticut. She had a long commute to work and had to drive some distance for most activities.
Lauren had grown accustomed to an urban lifestyle of constant activity and cultural diversity while attending college in Washington, DC. In contrast, the neighborhood where she had been renting was isolated and anything but active.
Additionally, Lauren's complex, where she lived with a roommate, was not well-maintained and lacked a sense of community. However, in her West Hartford condo, Lauren lives near the center of town, where there is always something to do.
"I can step out of my apartment and walk down the street to a restaurant, a coffee shop or a store," she said. Lauren had always dreamed of living in a "Pre-War" building, and her West Hartford home includes large windows, a back porch and beautiful brick fireplace, which is one of the home's best features.
Lauren is thrilled she was able to paint her walls and change the light fixtures in her condo, two luxuries she was denied while renting.
"I painted everything," she said. "I never thought I'd have such a brightly painted apartment, but it works well."
And after splitting rent with a roommate in the apartment, Lauren now is able to live alone, giving her some much-needed independence.
Lauren believes the best thing about owning a home is that it is an investment. In fact, Lauren's condo has already doubled in value since she purchased it in March 2001.
"When you rent, it is like throwing money away," Lauren said. "This is going toward something."