this post was submitted on 28 Jun 2023
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[–] [email protected] 14 points 2 years ago (1 children)

Except at a certain rate your entire payment is going towards interest and your principle doesn't go down at all so its basically throwing money away.

[–] [email protected] 3 points 2 years ago (1 children)

It depends. If your payment is less than rent would be you're still coming out ahead. And the alternative could be a payment you can't afford. At least this way you can choose to sell or ride it out and wait for rates to come down instead of getting foreclosed on.

[–] [email protected] 2 points 2 years ago

More accurately:

Mortgage payment + maintenance + tax < rent