Buy or rent?
Find mortgage rates for first-time buyers (Jan 26th, 2019) Ongoing costs Once you’ve moved in, you’ll need to be able to comfortably pay all those expenses that renters don’t have to worry about.
So what are those costs?
Should you buy now?
Mortgage insurance if your down payment is less than 20 percent, most mortgage lenders require you to purchase mortgage insurance.
Government-backed mortgages also have mortgage insurance costs.
Every month, an amount to cover your annual insurance and property taxes is added to your principal and interest payment.
And, by the time your place is 25 years old, you should each year be setting aside 4 percent of the purchase price.
Presumably, you’d have had to rent a home.
Landlords typically charge each month between 0.8 percent and 1.1 percent of a home’s value.