Thursday, August 16, 2012

Own a Home Close to Work and Save Money

What is the financial impact of living outside the city where you work?

A gallon of gas is currently $3.75 a gallon. A person that lives in Paso Robles and works in San Luis Obsipo uses up approximately 2.5 gallons of gas to go to work and return home on a daily basis. Based on only 20 days of work a month, that’s about 50 gallons of gas a month, or $187.50. This doesn’t include wear & tear, maintenance and automotive repairs costs. The cost for only gas for the year would be $2,250. Based on California's current Milage Reimbursement Rate of .55 per mile,  your monthly expense to commute an average of 35 miles to work would be $770 and your annual expense would be $9,240!

If you lived in the same city you worked you would save thousands of dollars a year in gas, wear & tear, maintenance and car repairs.

If the $2,250 was applied to your mortgage payment every year instead of towards gas, what would be the impact?  Based on a mortgage of $450,000 with a 3.75% interest rate for 30 years, you would be able to reduce your final payoff date to 26 years and 2 months and save $43,055.10 in Interest on the loan because it was paid off faster.

We all can’t live where we work, but if you are looking to shorten your commute, save time and money, give me a call to begin your search. I'm here to help.

"A Realtor that knows homes."

Traci Ferguson

License #01875751, ecoBroker #16082

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