Quote:
Originally Posted by slapass
That is just crazy talk. Seriously, what is the point of saying that? The person stills pays rent and if the two are equal isn't getting a home even if financed all the way out better?
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Ill chime in:
The main reason for saying that is if you dont have the money to put down 5% (at least) of the asking price then that means you can not afford it. People think just because you can foot the initial mortgage amount that everything is all good. Well, you need some sort of safety net when dealing with your primary residence.
First timers without knowledge rarely factor in PMI, insurance and property tax (real killer). So yea, things are lovely at first, but if your income takes a hit you could be in trouble.