[quote=jpinpb]Thanks, davelj. I am paying less than 1900. I’m paying 1800 including water. Another unit is now renting for 1650, but less of an ocean view. I did do the math w/only putting the FHA 3.5%. Your calculations are close w/the interest rate of 5%. However you didn’t calculate the PMI, and I’m not sure how to do that, but that needs to be added, which will make the monthly cost of owning a little higher. And probably should include somewhere maintenance/upgrading, particularly if staying 10 years.

That said, if it were close, I’d consider it, but this market seems so volitile and w/NODs and distress going on in the complex, I figure we’re not going to skyrocket to 2006 prices any time soon. I’ll just enjoy renting for now.

Although we’re in San Diego, apparently rents are decreasing in NYC and the anecdotal data on the link on that site says rents are falling in other parts of the country.
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PMI on a FHA loan (which I’m assuming since you mentioned 3.5% down) is 0.55% of the loan balance yearly. At 375K it’d be right around $170/mo.

There’s also a 1.75% upfront premium on FHA loans, which is normally rolled into the loan balance.