03-23-2003, 02:31 PM
i don't think buying a house makes sense unless you can pay for it without taking out a mortgage. i found this nifty little <a href=http://www.interest.com/cgi-bin/financial_new.cgi target=blank>site</a> that has an amortization schedule generator. it tells you how much of your interest and principal you'll be paying over the 30 years of your mortgage.
i figured a house will cost about 250,000 dollars. if you put 50,000 down, 20%, that leaves you with a mortgage of 200,000. at a rate of 8%, not everyone can qualify for 6%, you'll be paying almost 16,000 in interest the first year alone and you will have only reduced your principal by 1,600. in year 20, you'll still be paying 10,000 a year in interest.
i think it's better to rent and invest that 1,600 a year until you have enough cash to put down at least 75% of a homes purchase price.
i figured a house will cost about 250,000 dollars. if you put 50,000 down, 20%, that leaves you with a mortgage of 200,000. at a rate of 8%, not everyone can qualify for 6%, you'll be paying almost 16,000 in interest the first year alone and you will have only reduced your principal by 1,600. in year 20, you'll still be paying 10,000 a year in interest.
i think it's better to rent and invest that 1,600 a year until you have enough cash to put down at least 75% of a homes purchase price.