When is it better to own vs. rent a home? Mint.com Ask-the-expert

[vivianblai]

the "typical" mortgage is the 30yr fixed. i'm not sure where the 15 years comment comes in...as a person who's in search of the perfect home to buy, i'm not thinking that my home purchase would be paid off in 15 years...

[Shawn4168]

You are insane if you think that purchasing a home that costs 4 times your annual income is a good idea. A family making $75,000 has no business buying a $300,000 house, unless they have a substantial amount of money saved up already. 20% down would mean a $240,000 mortgage...at 15 years that means a $1800 payment. That's nearly HALF the monthly take home pay for a family that makes that much.

[meladorri]

You also need to examine your motivations for owning, it's more than just credit and affordability. Don't feel pressured to buy because it's what you're "supposed" to do. Unless you plan to hold on to the property for many years and invest significant amounts of time, money and energy into maintaining it, maybe renting is still the better option. Contrary to what we're told, renting is NOT throwing your money away. You're paying for flexibility and peace of mind.