Question
Amondat has $80,000 down payment saved up for a home. Currently, she is renting, but she wants to buy a $500,000 house. Her housing costs
Amondat has $80,000 down payment saved up for a home. Currently, she is renting, but she wants to buy a $500,000 house. Her housing costs (PITI) would only eqate to about 20% of her gross income. She has no other substatnial debt. She suspects she whe will be moving out of the area in about 3 years. What would be the best advice for her from the selections below?
A. Continue to rent and wait to buy a home once she moves. Continue to save to try and have a down payment of at least 20%.
B. Save money for 1 year until she gets $100,000 so she can put 20% down on the house.
C. Buy a house now so that she can save money on rent.
D. Wait until she has saved enough money to buy the house with cash.
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