While renting in some markets can be cheaper than typical mortgage for comparable homes, the amount indicated seems a bit insane.
So either he is in a crazy real estate market, or there’s some additional context that makes it a poor comparison (going from renting in Virgina to Mortgage in San Francisco, going from a 1500 qt ft townhouse to a 3000 sq ft detached house with a quarter acre of land, or going for a 10-year mortgage). Or he’s just making it up or exaggerating because it’s the internet.
Interestingly enough that $4500 is pretty much exactly what it would be with 20% down on a $500,000 house for a 10-year mortgage. Of course, I’d expect such a house to rent for about $2700 rather than $1900. I could easily imagine he was renting a 2000 square foot 3 bedroom for $1900 and moving to what seems ‘slightly better’ 3000 square foot 3 bedroom with an extra special room or something, seeing that the 10-year mortgage is much cheaper in the long haul and going for it despite the huge monthly payment in the short term.
While renting in some markets can be cheaper than typical mortgage for comparable homes, the amount indicated seems a bit insane.
So either he is in a crazy real estate market, or there’s some additional context that makes it a poor comparison (going from renting in Virgina to Mortgage in San Francisco, going from a 1500 qt ft townhouse to a 3000 sq ft detached house with a quarter acre of land, or going for a 10-year mortgage). Or he’s just making it up or exaggerating because it’s the internet.
Interestingly enough that $4500 is pretty much exactly what it would be with 20% down on a $500,000 house for a 10-year mortgage. Of course, I’d expect such a house to rent for about $2700 rather than $1900. I could easily imagine he was renting a 2000 square foot 3 bedroom for $1900 and moving to what seems ‘slightly better’ 3000 square foot 3 bedroom with an extra special room or something, seeing that the 10-year mortgage is much cheaper in the long haul and going for it despite the huge monthly payment in the short term.