When is it right to buy your first home??

Credit and mortgage advice Forums Buying Your Home Buying Your Home When is it right to buy your first home??

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      Anonymous
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      We are only going to be around this location for around 5 years. Would it be smart to buy a home, or to rent? This is assuming that we would be putting down 3% to the total 160k 30 year mortgage up front Should I pay taxes/insurance/interest for 5 years then sell, or simply rent until we move in 5 years? Keep in mind that for the first 5 years, interest makes up 85% of the monthly payment. Thanks!
      well that’s the thing…. all things are not equal. Rent would be around 800 monthly. Mortgage/insurance/taxes will be around 1350 monthly. If my mortgage is 1k per month and 850 is interest, then after 5 years i will be paying over 50k in interest and only 9k toward principal, not to mention 20k in tax and insurance. So, assuming I sell in 5 years and the property hasn’t depreciated, i would’ve put over 70k worth of taxes/interest/insurance in a house that i only will be getting 9k in return plus what i originally put down. This is also assuming no home repair costs. Originally i wanted to buy, but if its only for 5 years, i am having second thoughts.



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