I have been trying to decide whether it is possible for me to get out of the endless renting cycle, which is really just draining my funds and leaving me with very little to show (aside from the temporary roof over my head), and to finally buy a home.
It just seems like such a complete waste to rent when I could invest my money into a piece of property and actually have some assets and security, rather than paying money for something so temporary. Before the economy decided to tank, this would have been a much easier decision. Back then I know that I would have been able to afford a down payment that would have gotten me a mortgage.
Lenders were pushing so hard to get first time home buyers into the market that you really only needed to come to the table with a deposit of 5% or sometimes even less (you might even luck out and not need any deposit!), but these days those kinds of deals are few and far between. I don’t think I would ever take out a mortgage without a pretty decent deposit anyway, just because I know that without it the interest rates would be outrageous, but it was still comforting to know that it was an option if I needed it. I have been using some mortgage calculators online to try to get an estimate on what my payments would be like and see if this is something I can actually swing. Depending on how accurate the calculator really is, I think that this is actually a possibility. If I can get a decent price on a house (thankfully, it is still a buyers market right now), the should be able to come to the table with a 20-25% deposit. A deposit like that should mean that my mortgage payment will only be just a little over what I am currently paying for rent.
The biggest difference is I can feel like I am putting money into an investment and not just throwing it away, which, in my opinion, is worth the extra hundred or two at the end of the month.