[quote=AN][quote=Scarlett][quote=UCguy]Here is another reason why to buy – giving our age.
We could choose to give away money to pay PMI for 7-8 years – 38.5 K total over 7.5 years or, to pay rent – 26K per year, times 2.5… > 55K.
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I think it’s incomplete calculation. Take into account that in those 2.5 years you will pay, what, $1000/mo LESS on housing if you rent. Plus you don’t have to pay any maintenance, higher utilities, HOA, MR, etc.[/quote]
How do you figure $1000/month less if he rent? A $500k house in PQ/Scripps can probably rent for around $2200-2500, depending on the house. If he put down 10%, aimloan’s rate is @5% w/ 0 points. His monthly payment would be $2400. If you add in tax and insurance, it’ll be ~$3000. If you subtract the tax write off, it should bring it down to around $2500 (depending on tax bracket). This is including paying principal.[/quote]
I didn’t consider property taxes since it’s kind of a wash with interest deduction, IIRC.
$2400 P&I, $450 PMI, $250 for 401K loan (for the 5%), $100 for insurance.Assume his rent is $2200/mo. Assuming no HOA, or MRs.
