Mortgage Basics
A calculator a house and a $1 bill in the background
Chapter 1: Should you buy or rent?

Nearly everyone dreams of owning his own home. But can you afford the house and all of the expenses associated with it?

A home is the most expensive purchase most of us will ever make. In this chapter, we'll examine the pros and cons of homeownership and show you exactly how you should calculate how much you can afford to spend on a house.

What you can expect to learn from this chapter:
  • Should you buy or rent?
    Owning your own home is a cornerstone of the American dream, but there are pros and cons to it. We help you decide whether to buy or rent a home.
  • How much house can you afford?
    Once you've determined if you want to own a home, this section will show you how to calculate how much you can afford on your annual salary.



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Poonkulali Thangavelu

Homeowership rate down for all groups

Even as the housing market continues to improve, there are still signs that it has not yet fully recovered. Among them: the homeownership rate for the first quarter of 2015 fell to 63.7 percent. When was the homeownership rate last lower than this? You would have to look back to 1986, that long-ago year when  ... Read more

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