Reply to would you take out a mortgage that is half of your take home pay?

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Reply to "would you take out a mortgage that is half of your take home pay?"

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[quote=Anonymous][quote=Anonymous]That depends.

How much are you paying in rent now?

In some parts of the country where rents are high, it makes more sense to buy and stop the increases in housing expenses. My mortgage is 2,000 and that’s what I was paying in rent for my 1bedroom apartment when I bought. Five years later, that same 1 bedroom apartment rents for 3,000 and my mortgage on my 4 bedroom house is still 2,000. Yes, I’m very glad I bought. [/quote]

But the point is what budget did you have to buy with?  Of course buying is typically better but it's relative to how much you can afford.  I mean we're set with a great 2.8 30 yr loan but you know at 7% people prob are limited in options.  While rent is $$ it totally depends on what your financial status is.  And what house you buy.  Between maintenance insurance and landscaping, owning a house comes with its own share of liabilities.   I think the argument of always buying is incorrect.  Everyone's situation is different.  OP is also single.  Does he intend to remain in this area?  Renting allows more opportunity to relo for example.

OP I wouldn't do it but if you felt that you could sell easily if you had to and you are frugal enough to make it work while building equity, go for it.  It just really depends on your threshold of risk cause $6k is not that much.  If you feel like the house is a great deal and the resell of neighborhood makes it a worthy investment that's another reason to go for it but make sure you have outs if you needed money.  [/quote]

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