When Renting Instead of Buying Makes More Sense
If you are considering buying a house, one of the first decision you need to make is whether buying a house instead of renting one is the right direection for you. Since owning a home is the "America Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Not everybody should own a home! Some people aren't cut out for home ownership, for a variety of reasons. Are you one of those who should rent and not buy? Here are some ways to tell: Bad credit report. Does your credit report stank? If your Fico score(is a branded version of your credit score developed by and named after FICO (formerly known as Fair Isaac), is below 620, you're not going to receive a good interest rate is a rate which is charged or paid for the use of money), for a loan and, in fact, that kind of score could dump you into the hands of a predatory lenders(describes unfair, deceptive, or fraudulent practices of some lenders during the loan origination process). Not a good sign. Lenders consider two ratios: front-end and back-end. The front-end is your mortgage payment, plus taxes and insurance divided by your monthly salary. The back-end adds your monthly debt payments to your PITI payment(The amount paid per month in P rincipal, I nterest, T axes and I nsurance for a given property), used in determining the debt/income ratio before dividing that total figure by your salary. High debt ratios(Total liabilities divided by total asset). [continues]
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