Purchase a home, or get out of debt first?
Do you think it's wiser to pay off debt first and rent a home, or to purchase a home and begin investing in that and pay your debt down over two to 3 years?
If you could afford a mortgage payment, then it might be wiser to buy then to rent. If you are renting, then all that money that you could be using to pay off your mortgage will be used to pay rent to somebody else. You can always consolidate your debt after you purchase your house which might save you some money. On the other hand, it might depend on the interest rates you would get on good credit vs not so good credit.
Definitely some things I've thought about as well. Thing is my rent is dirt cheap and it really is a better option than buying. Building equity in myself rather then for someone else can be frustrating though.
Figure out the amount of the mortgage payment you can reasonably afford. If you buy a home you also must take into account the property taxes, utilities, and essentials such as lawn mower, appliances and draperies. Some of these items may come with the house. If the mortgage plus expenses is similar to what you are paying in rent, then purchase may be a good decision. If mortgage plus expenses is quite a bit more than your current rent, look at how much disposable income you will have to pay your debt down and have enough money left for regular living expenses. If your debt has a low interest rate, you can pay it down gradually. If your debt is at a high interest rate, try to pay it down as soon as possible.
Considering most banks take into account your debt-to-income ratio, you could probably afford more home or get a faster loan approval if your debt is paid off.
by HubPages 8 years ago
How To Pay Mortgage Early
by IROC40 7 years ago
how to pay my mortgage payment
by sandra rinck 10 years ago
Let me start off with roolllff! Everytime I look at a bill I get sick, everytime I need to bust out a credit card just to make it to the next month I wanna puke. Trying to get along in a busting economy is making me sick. I do need advise, good advise in a couple of areas,...
by Donna Cosmato 7 years ago
After you close on a home purchase, when is your first mortgage payment due?What factors (if any) affect the actual due date of the first payment?
by American View 7 years ago
OK I give up. Armageddon is coming. President makes threats, talks down to Americans, Dems plan has fake cuts and they refuse to look at Repubs offers, Repubs balking at Dems offers saying no raising the taxes. No wonder Bachmann has a migraine. Forget politics, forget which plan you think is...
by Dave Rogers 6 years ago
What is the best way to pay off debt?If you have debt would if be better to pay it off yourself or use those debt assistants like careone or incharge.
Copyright © 2019 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
HubPages Inc, a part of Maven Inc.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|