Why Buy When You Can Rent?
by William Bronchick
No that isn't a misprint. In today's market, you can do better financially by renting rather than buying your next home. Using an old, yet little-known technique, you can own your dream home for less money, less down and lower monthly payment.
Let's say you are in the market for a $250,000 house. For a conventional loan of that size, you'll likely be required to put down 20%, which is $50,000. In addition, you would have to pay closing costs, origination fees, survey, appraisal and points for at least another $5,000. A $200,000 mortgage at 8%, 30 year-fixed rate would be $1,467 principal and interest. Add insurance and taxes and your payment would be about $1,800 per month. So, at closing you'd be out of pocket a...
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