ok, i have a "decent" safe job. i have two choices...money in the bank or a house w/not so much money in the bank. my question to you is...what's better the security of having money in the bank or having a house for security?

Please don't forget that a house also requires monthly maintenance expenses on your budget. Also, will you have enough down payment to avoid PMI?

If you don't mind, can you please provide an overall financial picture and budget for us to look at?

things for me to think about the pmi...i am learning as i go.

Fantasma: you'll probably need to pay PMI of you put less than 20% down.

To answer your question, or rather give you more to think about...

Owning a house gives you mental/emotional security of having something substantial that you own. It can also give you a sense of committment and belonging to a community. As mentioned, it also increases your monthly bills and costs and you need a bigger emergency fund to cover things like the furnace breaking down and having to spend $10000 to replace it. You also build equity rather than sending money away to rent every month.

Having money in the bank can give you financial security and also the freedom to not commit and be ready to move around at a moments notice. This can be a very good position to be in when you are young.

I don't think anyone can give you a firm answer unless you give more information about your finances, job situation, and what you WANT.

i'm not sure where people get the notion that there is security in owning a home. The vast majority of people will owe a lot for a long time, so that's a false sense of security. You don't own the home until it is paid off. Second, even if you pay off the home, how secure are you, because you can be, and many people are, house rich, but poor since home equity is isn't as easy to tap (especially nowadays), and when you do, then you owe again.

i believe that in this new economic era, you need to get your whole financial picture in order and lined up before buying a house. a house isn't the end all. i'm 39 and we are just now buying our first home; however, i don't believe we were in the financial situation i wanted to be in before buying a home before now. i still cannot believe people are taking out ARMS, interest only, and no to little down mortgages. Ok, there are situations where some of these products are beneficial; however, zero to no down? really? i was really pissed at my credit union, because they do no give fixed rate mortgages for jumbo loans anymore. they only do ARMS. I was like what the heck, i thought we just went through this whole crisis because of all these ARMS etc, and now in order to get a jumob, i'd be forced into one if i went with them? give me a break!!! i can understand banks want to earn a buck, and they are earning millions and billions wiht the free money tax payers are giving them, but to make more by forcing folks into ARMS is ridiculous.

The flip side are banks like USAA, who are really retrenching. They want 30-35% down. Where did the 20% rule go? They gave an excuse that this is the new Fannie Mae guidelines. I go, you got to be kidding 30-35% is the new guideline, because I don't know other lenders requiring 30-35%.

that's my rant.

anyways, back to OT. If you do not have an emergency fund (regardless of how "decent" safe job you have), you need to have one. Stuff happens. If you aren't saving for retirement, you ought to be. sock money away money for those and to save for a house, and go from there. it is in no way "secure" to feel that buying into a large debt like a mortgage when you do not have cash reserves. aside from stuff happening in life in general, stuff happens with houses along with routine maintenance items.

if you have cash reserves and you can put money down on a house, then i would buy a house within the next year, because the only way to go for rates is up. the big test will be in march when the govt's MBS buyout expires.

I don't think we have a year, the MBS stuff is set to expire in March, and rates are already creeping up. Unless the MBS program gets extended (it might), I think we're going to see interest rates skyrocket.

We just made an offer on a house, so I've been reading Bankrate.com like a hawk for the last few months. I want to get in on a mortgage asap, before rates go up a percent or two.

googoo i am not going to buy a house....i have to get out of debt, save and possibly travel the world if i don't get a job outside of the usa. i am slowly backing away from what my parents taught me. i don't need to own a house. i need/want money more.

well, that's an entirely different story from what you originally posted

Bank deposits in the USA are insured up to $250,000.
Yeah, that's worked smashingly the last few years.

Money in the bank, I prefer living for rent. If you have a family and want to settle down you might want to get the house, but otherwise I like to feel that I could pack up and leave

Hi Guys,

Obviously i will buy a house.Because whether you live in your own house or on rent maintenance will always comes in to picture.So its better to live in our own house and it will be your permanent property.

Thanks
Steven.