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FidgetyRat posted:I personally would only buy a home if I had intention of spending the rest of my life in that location.. Yeah, but most people aren't like this and if they're in a reasonable financial position (as mlmp08 appears to be) there's no reason for them to do this if they want to spend their money on a house. What I would suggest is doing the math; count the closing costs, property taxes, PMI, interest, etc. -- all the costs associated with home ownership -- and then subtract from them them the amount of equity that would be built in 5 years. While doing this it's important to remember that mortgages are typically front-loaded with interest early in the amortisation period, so if he's typical he'd probably be paying 3:1 interest:equity (that is, only 25% of the payment is going to equity) over the first 5 years of his mortgage After he does the math, he'll know just how much he's paying for the house as opposed to how much he would pay to rent and he can decide for himself if that's a premium he'd like to pay.
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May 17, 2009 17:22
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FidgetyRat posted:When it comes to mortgages and homes, its always better to prepare and expect the worst then take a chance and risk financial ruin. I bet everyone in foreclosure now didn't expect the economy to come tumbling down around them. It's just as ridiculous and unreasonable to expect the worst as it is to expect the best, and doing either will lead you to make bad financial and life choices.
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May 17, 2009 17:55
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