4 ms·
In a lot of places, mortgage payments are around the same as rent, so if you can "buy" (qualify for a good mortgage) you'll be paying less AND your net worth wi
by Firmwarrior 4y ago
In a lot of places, mortgage payments are around the same as rent, so if you can "buy" (qualify for a good mortgage) you'll be paying less AND your net worth will be growing
Of course, the situation is more complicated in areas like the SF Bay and Seattle. Housing prices vs rent basically assume 5% year over year growth forever, so if you think housing prices will be flat, it's economically advantageous to rent
There's a good calculator without a ton of BS here on this old page: https://michaelbluejay.com/house/rentvsbuy.html https://michaelbluejay.com/house/rentvsbuy.html
- gassiss 4y ago> In a lot of places, mortgage payments are around the same as rent, so if you can "buy" (qualify for a good mortgage) you'll be paying less AND your net worth will be growing sure you'll be paying less, but you'll also be buying a lot of risk. You don't own anything until it's fully paid, and if the interest rates skyrocket good luck with bankruptcy
- causi 4y agointerest rates skyrocket good luck with bankruptcy What kind of lunatic doesn't get a fixed-rate mortgage?
- pharmakom 4y agoThis is the norm outside of the US
- imtringued 4y agoWhat kind of lunatic offers a fixed rate mortgage for 30 years? If people knew anything about banking they would realize that this type of mortgage can only exist in the form of a government subsidy.
- lazide 4y agoFYI - that hasn’t been true for several years in most of the country.