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[quote=Anonymous][quote=Anonymous][quote]We can't save a dime because of the money we are dumping into a rental.[/quote]

I get that home ownership is something that you really want, but I dislike the attitude that renting is "throwing away money."  I mean, you need a roof over your head, whether you buy or rent, right?  [b]If you put a tiny percent down with a really awful interest rate, I kind of feel like that's "throwing away money" in a sense...to the bank[/b].  It takes a long time to build equity that way.  Also, if you're counting on refinancing, what if interest rates go up?

On top of that, home ownership is more expensive than it seems.  There are repairs, local property taxes, maintenance, and it all adds up.  Sure there's the mortgage interest deduction, but unless you have a healthy emergency fund, I don't really know you would be able to handle home repairs.  It is kind of nice to just call up your landlord and get them to take care of it. I personally also appreciate the mobility that renting allows, and the ability to move someplace with a better commute if you or your husband have a job change.

I would keep renting and rebuild your credit.  The daycare costs are going to ease up in a few years (yes, there's camp and afterschool and so on, but it probably won't be $2,000 a month) and you should have a little more room to save.  In the meantime, try to look on the bright side of renting.[/quote]

I totally agree With the above. Another PP also estimated tht you might save only $1000 in equity after the first year or so. It seems like there are other ways to save that $1000, that done come at the risk of living on the edge financially and spend that equity on repairs, or  spend it all (and more ) on the transaction costs if you sell within a few years.

I wonder if you've come across Dave Ramsey's "Total Money Makeover" book and program. I used to listen to his free podcasts. His whole thing is about having people turn around their financial situation. The podcasts (and maybe his book) are full of stories of people who were In situations similar to (or worse than) yours and who took charge and totally turned their financial lives around. PPs have given good tips about cutting down on cell phone bills, etc, and it sounds like no fun but when you learn of other people doing the program it can get exciting because you see a great end goal of being debt free. And you see others doing it and it can provide you with momentum.

I'm a long-term renter and not inclined to buy anytime soon as I want the flexibility to move when my DH gets his next job. It does sometime seem like we are sinking $ into a rental but there are financial advantages to renting, as mentioned by several PPs.(I also think DC offers very little of interest in my price range that seems actually worth the price.)[/quote]

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