We've been living in an era of low inflation for quite some time. When inflation becomes more of a real issue again, renting is really going to look like a poor decision next to buying as rents skyrocket. What if this happens as you're getting ready to retire?
The calculations in the article assume PMI (not putting 20% down) and making minimum payments. Purchasing a dwelling this way adds risk and expense. It's better to wait until you have at least 20% to put down (AND 6 months of living expenses saved up), as you then avoid PMI and prove to yourself that you actually have the means to take on the purchase of a dwelling. Get the 30 year mortgage, but plan on paying it off in 10 - 15 years. Its also better to wait until the market is a buyers market.
Since purchasing a home, I've always paid less than I would have if I rented. Its now paid off and I don't have to worry about it. Freedom feels really good.
The calculations in the article assume PMI (not putting 20% down) and making minimum payments. Purchasing a dwelling this way adds risk and expense. It's better to wait until you have at least 20% to put down (AND 6 months of living expenses saved up), as you then avoid PMI and prove to yourself that you actually have the means to take on the purchase of a dwelling. Get the 30 year mortgage, but plan on paying it off in 10 - 15 years. Its also better to wait until the market is a buyers market.
Since purchasing a home, I've always paid less than I would have if I rented. Its now paid off and I don't have to worry about it. Freedom feels really good.