Quote:
Originally Posted by lewdog
But too many are in the OPs case where they have no savings but think they should buy a house! They come no where close to 20% down. Renting is the best option to build an emergency fund, which can be followed by saving for a down payment for a house. To many idiots with no savings who lose a job and then can't pay the mortgage. Easier to break a rental lease then a mortgage!
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True, it's not something to jump into without a plan.... hell, I knew smart people who jumped into a house a few years ago since it was so easy during the housing boom. Even with 20% down + some extra cash and even an emergency fund, you have to know how fast you can recover from all of the up front costs, and be certain that you can put away a decent amount every month for the unexpected. And you should also have a pretty good feeling that you'll want to live there for at least a few years, and some rent vs buy calculators will tell you that you don't break even for 7+ years.
That said, it is a
great time to buy....
