Renting vs Buying -- Understanding & knowing the difference -- Part 1 of 3

Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc


throwing money out the window


Are you throwing money out the window by renting? More than likely, yes. But this can be a complicated decision based on several different factors. Sure, you can try the many rent vs buy calculators online, but I have found so many not to be the same as the first one.



When should you not buy a home?

  • If your rent is very low. (usually 2/3 or less of your monthly payment)
  • You intend to move in a few years. (unless you get into the house with no money out of pocket)

Is this statement, "throwing your money away on rent", a myth? It certainly can be and here is why. When you buy a home, you still have expenses unlike renting.



houseOkay, are you confused, since I have mentioned some negative reasons why not to buy a house. It's because the positive reasons will outweigh the negative reasons of buying a home. Key word being usually. Your home can become your own personal bank.

Positive reasons for buying a home 

  • You can write off the interest yearly
  • You can deduct the points that you paid when purchasing, the 1st year
  • Your home will appreciate, becoming more valuable over time ******
  • Pride :  The home is yours. You can basically do what you want, within reason.
  • Once your home is paid off, you just have yearly taxes and homeowners



Overall, this is the best time to buy.  Home values have dropped in many places and they are now leveling out, stablizing.  Also, rates are still low.... anything from 6% to 6.750%.



In Part 2 : I will talk about comparing renting vs buying in dollar figures. And I will also introduce a few different types of programs to help you in buying your dream home.




The First Time Homebuyer Series :


  • Renting vs Buying -- Showing the difference in $$ -- Part 2 of 3
  • Renting vs Buying -- Knowing your loan options -- Part 3 of 3

Buying Tips :




- FHA Loans  - Conventional Loans - VA Loans -

Experience & Knowledge at its BEST !!!




For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Copyright © 2008 by Jeff Belonger

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!



For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors


Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Elizabeth Cooper-Golden 11/09/2008 07:03 AM
Lending / Financial
New Jersey Camden County Cherry Hill
All About Mortgages/Mortgage Networking
1st Time Buyers
The FHA Mortgage Group
fha loans
less than perfect credit
first time homebuyers
fha mortgages
renting vs buying

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Linda Lipscomb
Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN
731-695-1118, Lexington TN Homes


Great info.

Thanks for sharing.

Look forward to Part 2 & 3.



Oct 23, 2008 12:39 PM #1
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Jeff, great advice, as usual.  And yeah, when you own the place there's no landlord to call when you need a drain snaked!  But you can learn to appreciate the appreciation!

Oct 23, 2008 12:41 PM #2
Joyce Logan
RE/MAX Achievers - Westerville, OH

Hi Jeff,

This is a great post! Thanks for sharing.

Best wishes!

Joyce Logan, Realtor Real Living HER, Ohio

Romanelli & Hughes Custom Homes

Oct 23, 2008 01:00 PM #3
Katharine Carey
eXp Realty - Bellingham, WA


It is nice to have something broken down for better understanding. I read a book that actually gave figures that was very informational but darn if I can find it. Thanks for refreshing my thoughts to keep looking for it. 


Oct 23, 2008 01:08 PM #4
Tim and Pam Cash
Crye-Leike (Sango) - Clarksville, TN
Real Estate Professionals - Clarksville TN

Jeff, great post.  I like how you lead with the reasons one may want to rent, then show how owning a home has so many benifits to a person or family.

Oct 23, 2008 01:11 PM #5
Ken Tracy
Keller Williams Realty Infinity - Naperville, IL
Helping clients buy and sell since 2005

Hi Jeff.  I like this post.  I need to start marketing harder to buyers.  I always direct my marketing towards the listings.

Thanks for writing,


Oct 23, 2008 01:17 PM #6
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans


ROBERT...... .  why is that on a commercial site?  Commercial and residential is totalling different. Sorry, but that is my opinion.

LINDA..... . my pleasure... thanks for stopping by and for the compliment.

PATRICIA....... . learning is not that hard... and it can be cheap. Plenty of self-help books.... but yes, you can basically do anything if it's yours. Thanks for the kind words and polite compliment.

JOYCE..... .  hey, that looks pretty close to Linda's comment. Seriously, thanks...

KATHARINE...... .  I think it's always great to have things broken down... especially when it comes to the myths of renting or buying... to see it side-by-side...   please let me know if you find that other information.

TIN & PAM....... .  thanks... I like to show the negative first and then roll right into the positive stuff. I think it's good to do that for several reasons. thanks for the compliment.

KEN..... . yes, since this is a buyers market and they shop online.. yes, you need to address buyers and market to first time homebuyers.  thanks for the kind comment...


Oct 23, 2008 02:08 PM #7
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon

Look forward to the rest of this series - you always give such great info for the agent and the consumer - thanks Jeff - we are seeing prices that if people dont take advantage of they are missing the boat

Oct 23, 2008 03:12 PM #8
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

This is good advice Jeff. I like the way you differentiated between who should and should not buy, based on how much they pay in rent.

Oct 23, 2008 03:51 PM #9
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management


Thanks for the post. Good advice and it can never be overstated, especially to the qualified buyers in this market.

Oct 24, 2008 12:24 AM #10
Jane Page Thompson
Aiken Properties - Aiken, SC

Jeff, thanks for this post, I am seeing alot of clients weighing this out right now.

Oct 25, 2008 07:41 AM #11
Joe Pascal
Joe Pascal - 5 Star Real Estate - Serving Wilmington, N.C. - Wilmington, NC

Jeff, top notch post on FHA.


Jan 31, 2009 01:12 PM #12
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