Is Renting A House A Waste Of Money?
Some people believe renting is a good idea and others think renting is a waste of money. Those who think renting is a waste of money often have firm beliefs, as do those who have rented their entire life.
I wanted to move out and get my own place, as you can imagine, but I didn’t know where to look. I did know one thing – I wasn’t going to rent an apartment. I was going to get a loan and buy a home.
My Dumb Mistakes Make Me An Expert!
Renting Is A Waste Of Money, Right?
My opinion was that apartments and rentals were a waste of money.
What I Should Have Done – Renting Versus Buying
Renting a small apartment would have allowed me to save up at least 20% to avoid paying extra each month to pay for private mortgage insurance.
The people over at MortgageCalculators.info have a great free Rent or Buy Calculator which helps you quickly decide if it makes more sense to rent or buy, depending on your unique situation.
Use A Renting V. Buying Calculator To Make Your Decision
– Monthly rent payment (used as total monthly home expense) – Mortgage term in year – Annual interest rate – Private mortgage insurance
Their interactive calculator allows you to put in anticipated mortgage details related to:
It depends. If you do not have a substantial amount of cash saved up to make a significant down payment – renting for a few years is the smarter move.
So Is Renting A Waste Of Money?
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