Financing a House

The first decision is whether you want to rent or buy a house.

Advantages of Renting:

  • Usually Lower cost than owning
  • More Flexibility in moving relative to owning

Disadvantages of Renting:

  • No tax breaks for renting
  • Not building house equity

Advantages of buying a house:

  • Building equity monthly(saving)
  • Homes generally appreciate in value
  • Housing costs have lower variance
  • Good if you want to stay long-term in an area

Disadvantages of buying a house:

  • Long-term financial cost
  • Locked into real estate & home maintenance costs
  • Requires a down payment and mortgage