Why Should I Rent If a Mortgage Payment Is Cheaper?

      34 Comments on Why Should I Rent If a Mortgage Payment Is Cheaper?

Why Should I Rent If a Mortgage Can Be Cheaper?

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34 thoughts on “Why Should I Rent If a Mortgage Payment Is Cheaper?

  1. Jessy

    Our expenses went up by a lot after we bought a house. Fortunately we have made a good down payment, emergency funds and no debt. Remember owning a home costs you more money . Our savings rate fell . You've got to pay property taxes, home insurance , maintenance bills, and home security costs etc. Last month our sprinkler system broke and we paid 450$ to get it fixed . I would say take these additional costs which you never get to see and have enough buffer money when you buy a house . Otherwise it is always safer to rent.

  2. Daytona Richardson

    we rent because we are building up our bs3 then move to bs3b. we have kids & live within our means. my brother has stated that us renting is throwing our money away compared to them who are making house payments but in our financial situation, we have talked about it & to us, its not because we arent financially responsible if something breaks or goes out. to us, paying alittle bit more in rent compared to just a house payment is worth it. once we get our down payment set and our BS3 then we can afford a home. without the worry.

  3. Lance kaminsky

    With a teacher mortgage credit in texas our mortgage, taxes and insurance is $870/month for a 3 bedroom, we were paying $900 renting a 2 bedroom before that. Luckily the past 2 years we havent had any major repairs. I think if you are going to live somewhere for at least 7 years with this mortgage environment buying makes more sense than renting.

  4. MidnightBeauty

    how about after 15 years of paying $1k including tax & insurance a month for a house then the house is yours in 15 years no mortgage payment just 2500 a year in insurance and tax vs 15years of renting of 1k a month? I can't see it. to me it's money down the drain.

  5. Crystal August

    The answer to the question is more so driven by market conditions. If you live in a place where the rent price is double the mortgage price. Renting would not make since. Rent is rising fast in here in Nashville alone. If I try to rent a good safe place I was looking at 1500 a month. I purchased instead and pay 800 including taxes and insurance. The maintenance cost I budget for using the 700 a month I am not paying in rent. Currently my income would not support renting because the cost for myself as a single mother would be more than 20 of my take home pay putting me in the category of housing cost burdened and I can't put my family in that kind of risk.

  6. StriveWithMe

    Where I live renting is expensive almost if not the same cost of mortgage including tax and insurance. However, to Dave's point as a renter there is no water pollution, house maintenance furnace and all, water etc. these are additional cost. On the other hand if you are financially stable then buying an affordable house isn't bad. I saw affordable because I know quite a few house broke individuals who can't even take a vacation.

  7. Breck Greenwall

    Can someone explain to me why we commonly refer to our annual income in Gross when our debts are essentially net? IE he says, oh you make $100K and have $100K in debt? You should pay that off in a year! Gross income of 100K is like 75K net. Gross debt of 100K is like 125K with interest. I'm not excusing these people with huge chunks of unnecessary debt, but when we're looking at a realistic plan to pay off debt you need to look at the big picture

  8. droptozro

    Agreed in general, but I have more standards that take priority over the financial risk which were much easier to accomplish having a house and land. We needed to start learning how to live off grid, yes needed because it's important to us. We agree with the understanding of spreading one's risk and learned that we had huge risk in putting all of our eggs in one basket for food, heating, clothing and water… namely utilities and your local grocery store. It was nearly impossible to practice living this way learning how to provide these things in a consistent manner in a city apartment.

    The house we got was about equal to rent in the area with all included costs. The knowledge we gained this summer and continue to gain is worth multitudes more. Our full emergency fund is about built. And we bought a house without A/C(on purpose) and survived this past hot summer. It's just an idea, but you don't need some of these utilities like you think you do. The major repairs in our house would be the roof or bugs if something happened to cause this to be more of a nightmare. Everything else can be worked around if we use our heads to find other methods.

  9. Liz Marie

    When I was renting a 3 bedroom, 2 bathroom home my payment was $1225/mo. I bought a 2 bedroom, 2 bathroom house in the same neighborhood. My mortgage payment including taxes and home owners insurance is only $653. I also pay $43/mo for additional home warranty which would cover my AC, heating, plumbing, etc. I view owning/paying for my house as a blessing because I would never have been able to find even an apartment for rent in a decent area for less than $900. Some areas of the country buying is the better option. I now have extra money to save plus I'm building equity in my house.

  10. pauljosse

    i could own my home if i stretched it out by 30 years for 150 bucks a week incl rates and insurances….. if i rented this house it would be 330 a week, since over 2 years its gone up from 130 000 to 230 000…. and ok its more expensive than renting because we took out a 5 yr mortgage but seriously, stuff renting.

  11. Westhill Meadow

    In my experience the landlord never actually fixes anything. That's the perk for us if owning, we really fix things instead of nagging them for months and accepting a haphazard band aid fix.

  12. inkey2

    buy a condo instead of a house. It's the best financial decision I ever made. Of course a condo isn't for everyone but if you're main concern is owning property at a minimal expense so you can sock away savings…..check out condos

  13. Viet PopLove

    also renting gives flexibility. You can move to a cheaper apartment or move to a different city or move back to your parents house after the lease is up. When you buy a home, you're tied to it for 15-30 years unless you pay it all off sooner.

  14. Paul Standaert

    Renting is somewhat like insurance. Landlords lease properties to make $$$$. That's the only reason. When you rent, there will be maintenance expenses that YOU ultimately pay for, just like insurance and then some extra $$$ for profit margin. All those costs of ownership that the Landlord absorbs is factored into your rent.

  15. Signify This

    I wish I knew about baby steps before I bought. I believed I was making a better decision when I bought rather than rent, but I totally regret the decision now. I'm locked into my mortgage for another three years, and all I want to do is go back to renting.

  16. Wesner Bazin Jr.

    I live in a nice home in Bergen County New Jersey and my Taxes for the last 7 years have averaged nearly 16K a year.  Just the taxes and HOA….  So yes it is much cheaper to rent.  I won't be owning for too much longer this is just way too much..

  17. johnny t

    Another thing to add when you own vs. renting. When owning a home, taxes and insurance can equal about four months of rent in most cases. So that's like only paying rent for eight months.

  18. melody271

    Man wished I would have heard this back in 2007 when I bought my 1st home. True, it turned into a curse and it was so stressful. I was house poor. Now I am out of that home and just focused on paying all my outstanding debt so I can become debt free THEN I will look into buying again.


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