Typically on a conventional loan, if your down payment is less than 20 percent of the value of the home, lenders will require you to carry mortgage insurance. Usually, you pay those mortgage insurance premiums until your loan-to-value ratio (LTV) — this is simply the amount of money you borrowed divided by the value of the property you bought — hits 80 percent. For example, let’s say you bought a $100,000 home and put a down payment of 10%, or $10,000, and got a $90,000 loan to pay the rest. Your LTV, in this case, would be $90,000 divided by $100,000, or 90 …show more content…
The max square footage that I could find is for 3 beds, 2 baths, priced range includes 1257-1,347 with 1,438 square foot. Despite the fact that you can’t build equity, renting offers you the most freedom and flexibility, especially if you are on a month-to-month lease. The advantage of renting is no maintenance Is required. If the garbage disposal breaks or you need a plumber, getting maintenance is as easy as calling the superintendent. Moreover, it’s easier to move. If you are not settled into your career or could have an opportunity to relocate in the near future, it is much easier to switch to a month-to-month lease or sublet than it is to sell your home. Likewise, you can avoid owning a depreciating asset. While home prices have stabilized and are rising in most housing markets, there’s no guarantee that your home will increase in value over time (Renting vs. Buying a House, n.d). I believe this decision is optimal for the person that isn’t looking to put down roots, don’t have the time to perform maintenance/ repairs on a home and are not ready for investment in a long-term debt commitment. All in all, making the decision to invest in a house or rent an apartment depends on the person necessity at that