Comments on: Friday Q & A: Saving for a home – How to Save for a home http://totalcandor.com/blog/2010/02/friday-q-a-saving-for-a-home-how-to-save-for-a-home/ A Conversation About Income, Wealth, and the Steps in Between Sun, 25 Dec 2011 17:20:47 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2010/02/friday-q-a-saving-for-a-home-how-to-save-for-a-home/comment-page-1/#comment-164132 Michael Mon, 22 Feb 2010 18:47:51 +0000 http://totalcandor.com/blog/?p=932#comment-164132 @D Wolfe: There's a lot to your question(s). Sure, plenty of people save very little before buying a home and pay PMI. The relative attractiveness of rent vs. buying varies by geography and based on market conditions at the time you choose to investigate buying. Nonetheless, I wouldn't compare the $150 to the $700 - $900, since your PMI is just one cost of owning and does not include the interest payment, real estate taxes, maintenance/upkeep, etc. Of course, there are upsides of ownership including possible appreciation and the emotional pride that comes with ownership. @D Wolfe: There’s a lot to your question(s). Sure, plenty of people save very little before buying a home and pay PMI. The relative attractiveness of rent vs. buying varies by geography and based on market conditions at the time you choose to investigate buying. Nonetheless, I wouldn’t compare the $150 to the $700 – $900, since your PMI is just one cost of owning and does not include the interest payment, real estate taxes, maintenance/upkeep, etc. Of course, there are upsides of ownership including possible appreciation and the emotional pride that comes with ownership.

]]> By: D Wolfe http://totalcandor.com/blog/2010/02/friday-q-a-saving-for-a-home-how-to-save-for-a-home/comment-page-1/#comment-164125 D Wolfe Mon, 22 Feb 2010 17:36:43 +0000 http://totalcandor.com/blog/?p=932#comment-164125 Michael, Do people typically need to save before buying a house? For example, our PMI is about $150/month. While that amount definitely adds up, in our area it's much less than renting (avg $700-$900/month). In my mind, I'd rather be putting my money on a house, and handing someone else $150/month, than handing $700/month to someone and never seeing anything for it. Does this vary by region? P.s. I'm in SC. Michael,

Do people typically need to save before buying a house? For example, our PMI is about $150/month. While that amount definitely adds up, in our area it’s much less than renting (avg $700-$900/month). In my mind, I’d rather be putting my money on a house, and handing someone else $150/month, than handing $700/month to someone and never seeing anything for it. Does this vary by region?

P.s. I’m in SC.

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