RentToOwn-HouseFinder.com
Are rent to own homes a good deal?
In the long run does it practically cost the same to have a RTO home as opposed to one you're paying a mortgage on? I will potentially be a 1st time home buyer in the next few months and I didn't know what route to go.
Public Comments
- If the rent is applied towards the purchase and the price isn't out of line with the market, this can be a good solution.
- RTO is usually done by people who can't get a regular mortgage for some reason. the people who "sell" RTOs know this and frequently marked up either the "purchase price" or the implicit interest rate, or both, to take advantage of that.
- Don't do the rent-to-own if you can avoid it. It's a system invented to prey on the poor. As another person said, it's usually more expensive ... but they're usually set up so if you make one late payment, then all the money you paid so far becomes rent and they can throw you out.
- rent to own are not a 'good' deal for u . for the owner- yes. understand for a safe RTO the owner must charge u enough to cover expenses (mortgage, taxes , insurance, wear/tear and enough to apply to a deposit). u in turn could rent a safe cheap place, save ur money from lower costs. u could spend ur time learning about credit slavery and income increasing methods. when u have enough money and knowledge u can buy ur own home. as a landlord , we did 27 RTO and only one finished the terms. they defaulted on the mortgage in 2yrs. given todays market/economy u'll do better renting and learn about money.
