Probably several reasons, but if you think you want to buy a home – think and run the numbers again (and again) to make sure it’s right for you.
If you are on the fence about renting v. buying, there’s a comparison below you ought to make. If it doesn’t make sense for you to buy, then don’t. There are several expenses related to ownership and you will be responsible to handle the repairs to and maintenance of a home (such as HVAC, Roof, Windows, Flooring, Appliance, Painting, Landscaping, Furniture, etc.,), even (outside through your HOA fees) as well as inside a condominium.
Use the table below to run some numbers to see whether renting works better than mortgage payments. Consider all your expenses and remember that repairs, maintenance, and improvements to your home will be burdens to you…But is the noisy neighbor and changes happening in your apartment complex more incentive to buy a home than the cost of ownership?
It’s up to you, but think first before jumping into home ownership!
| Rent (Compare this # with the “Estimated Principle and Interest Mortgage Payments” table at bottom of page that includes Property Taxes, PMI, and homeowner’s insurance.) | X 12 =
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| |
| Utilities Not Covered by Rent: | |||
| –>Electric | X 12 = | ||
| —>Garbage | X 12 = | ||
| —>Natural Gas | X 12 = | ||
| —>Water/Sewer | X 12 = | ||
| —>Other | X 12 = | ||
| Total Housing Related Costs = (Rent plus utilities not covered by rent.) | |||
(unrelated to housing expenses): | |||
| —>Car Insurance | X 12 = | ||
| —>Car Loan | X 12 = | ||
| —>Car Maintenance & Fuel | X 12 = | ||
| —>Clothing – New | X 12 = | ||
| —>Clothing – Dy Cleaning | X 12 = | ||
| —>Day Care | X 12 = | ||
| —>Entertainment – Dinner/Theatre/etc | X 12 = | ||
| —>Food – Entertainment | X 12 = | ||
| —>Food – Grocery Store | X 12 = | ||
| —>Health Care – Medicine/Visits/etc. | X 12 = | ||
| —>Insurance – Non Auto. | X 12 = | ||
| —>Other expenses: | X 12 = | ||
| —>Taxes: | X 12 = | ||
| —>Telephone/Internet | X 12 = | ||
(unrelated to housing costs)= | X 12 = | ||
| Total Expenses
(Housing & Non-Housing Costs)= | X 12 = | ||
| Savings for your Down Payment | X 12 = |
| Loan Amt | 100,000 | 150,000 | 200,000 | 250,000 | 300,000 |
| Loan P&I | 477.41 | 716.12 | 954.83 | 1,193.54 | 1,432.25 |