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Originally Posted by corporatejay
That's not what you said. You said don't put down 5%, you are likely in over your head.
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Not really sure how that's any different? All I'm suggesting is to buy within your means.
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Just a quick calculation but a $315,000 mortgage (so let's say a a $330,000 starter home) at 3.5% costs $1,582.69 a month, which is basically as much as rent or less. Why wouldn't you buy this if that's what makes sense for you? Why save up another 15k to buy the same house when interests rates are so low?
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Add on another 500 bucks for condo fees + home insurance etc, and you're easily over $2100/month. It might be enough to push some people into a precarious situation.
I generally agree with you though, a lot of times it makes financial sense for people to buy than rent, especially on the condo/apartment side of things. We did that ourselves 2 years ago. I'm just not convinced that having a ton of 700k houses bought on 5% is a good thing for the long-term if things ever go south.