I’ve seen the advice to buy only if you plan to be in the area for ten years and that if you do buy, to get the longest term fixed mortgage you can, with the monthly payment at what you’d be willing to pay in rent
The rationale is that since the bank can’t call it in at any time (like they could in the 1930s), you can live there as long as you’re making the payments. If the house has appreciated in value when you’re ready to move, sell and receive the equity. If the house has declined in value, the mortgage is only collateralized by the house (is this typical?), so either convert it to a rental property (with a rent rate that brings mortgage plus maintenance to breakeven) until the market recovers, or just walk away from it and view the money spent as ‘rent’ paid to the bank instead of a landlord.
I’ve seen the advice to buy only if you plan to be in the area for ten years and that if you do buy, to get the longest term fixed mortgage you can, with the monthly payment at what you’d be willing to pay in rent
The rationale is that since the bank can’t call it in at any time (like they could in the 1930s), you can live there as long as you’re making the payments. If the house has appreciated in value when you’re ready to move, sell and receive the equity. If the house has declined in value, the mortgage is only collateralized by the house (is this typical?), so either convert it to a rental property (with a rent rate that brings mortgage plus maintenance to breakeven) until the market recovers, or just walk away from it and view the money spent as ‘rent’ paid to the bank instead of a landlord.