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This might be a cool concept for somebody who knows they will stay and want to rent out one place for at least 3 - 5 years. Even then, I'm not so sure. Because

This might be a cool concept for somebody who knows they will stay and want to rent out one place for at least 3 - 5 years. Even then, I'm not so sure. Because when renting, yes, you pay a premium, but if the house needs repairs, it's not on you. If something happens, you walk away free and clear, etc. For a "lower monthly payment", you are taking on a much larger amount of risk that is Home Ownership and giving away the upside of that risk to someone else who has no obligations for maintenance/home improvements. This isn't "Reinventing Home Financing", it's buying a home with somebody else who isn't responsible for most of the costs of home ownership yet gets all the benefit. If you can only put 10% down on a home and are that desperate to have a 80% LTV mortgage, sure, this would do it. But there are MANY lenders who do a conventional home mortgage with 5% down. Using Point isn't worth the savings on the Mortgage Insurance. Maybe if you bought new construction, maybe. I'd still say on new construction you're better off taking the chance and not selling the equity in your home.

woah 10y ago
Do you feel that home ownership should be a money-making investment?
- tantalor 10y ago
  It is if you don't live in it and rent it out instead at a rate higher than the expenses.
- Cshelton 10y ago
  I believe in ownership of assets that appreciate in value. I would not buy a home, as an occupant in that home, to make money (buying an investment property is completely different). In a way, a home is a savings account. You always need a place to live. When you sell your home, typically you will put that money into your next home. However, today, do you really ever own your home? Even if you owned it outright, you're still paying easily 1.5-3% of its value a year in taxes. This is a completely different argument of course.
loeg 10y ago
> If you can only put 10% down on a home and are that desperate to have a 80% LTV mortgage, sure, this would do it. They don't even help with down payments. Minimum buyer down is 20%. Better to go with a conventional lender.

woah 10y ago

Do you feel that home ownership should be a money-making investment?

tantalor 10y ago
It is if you don't live in it and rent it out instead at a rate higher than the expenses.
Cshelton 10y ago
I believe in ownership of assets that appreciate in value. I would not buy a home, as an occupant in that home, to make money (buying an investment property is completely different). In a way, a home is a savings account. You always need a place to live. When you sell your home, typically you will put that money into your next home. However, today, do you really ever own your home? Even if you owned it outright, you're still paying easily 1.5-3% of its value a year in taxes. This is a completely different argument of course.

loeg 10y ago

> If you can only put 10% down on a home and are that desperate to have a 80% LTV mortgage, sure, this would do it. They don't even help with down payments. Minimum buyer down is 20%. Better to go with a conventional lender.