Re: Why would a sane person purchase a home?
01-02-2013 12:06 AM
I am a mortgage officer and real estate appraiser. I got hit hard in 2008, file for Chapter 13 and eventually lost my house. I've come to the conclusion that borrowing money to buy a house is not a good idea for me. When you look at how much you pay in interest over the life of the loan, you end up paying about 3x's the price of the house. That just makes terrible sense to me. I do intend to buy a house again, but I will save and pay cash for it. In the mean time, all I need is a large room to sleep, watch TV and work. I want my Debt to Income ratio at less than 25% per month. If you live in an RV, and rent free, how long would it take you to save $200,000? Could you do it in 5 years? Maybe you won't have equity through home ownership, but you will have equity through saving your money.