Mortgage Advice: “stay put” for 7 years or rent

Mortgagees: Considering the Seven-Year Plan

Excerpt:

Some suggest not moving, unless you expect to stay in the new home for at least seven years. That is the advice of Thomas Vanderwell, a frequent writer about real estate issues on the Internet who is a mortgage officer at Fifth Third Bank, which is based in Cincinnati but offers home loans in many states including New York.

Given current real estate trends, it will come as little surprise to learn that most buyers who move from existing homes will lose money if they move again in the short term.

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People who are renting, Mr. Vanderwell said, and who find a good deal on a home, should take into consideration the length of time that they plan on staying in the home because they will still need to recoup the fees they pay when they eventually sell it. But there are other factors to consider, like the difference between rental payments and mortgage costs, tax deductions for mortgage interest and, up to a point, mortgage insurance premiums.

Comment: Good read