Should You Buy Or Rent A Home
No vague Heuristics...What is the Maths behind renting vs owning a home?
Owning your own home.
The American dream.
2.5 kids, white picket fence, a dog, and a massive mortgage.
Is that the best way?
We previously compared putting 20% vs 3.5% down on a home. If you want to buy a house now and don’t want to save up the full 20% down, we showed you how. We also explored how much more expensive it was to put less money down (spoiler: over 7+ years it starts getting very expensive to put 3.5% down, but early on in the mortgage you actually benefited from the lower down payment & low home equity growth).
Now to answer the question of, “should you even buy that home in the first place or continue renting?