I Will Teach You to Be Rich: No Guilt. No Excuses. No B.S. Just a 6-Week Program That Works.

by Ramit Sethi

Buying vs. Renting:

I want to show you why renting is actually a smart decision for many people, especially if you live in an expensive area like New York or San Francisco.

The Cost of Buying a Home Over 30 Years

Mortgage rates change over time. Calculate your own numbers at mortgagecalculator.org.

The easiest way to see if you should rent or buy is to use the New York Times’s excellent online calculator “Is It Better to Rent or Buy?”

1. Check your credit score.

The Effect of Credit Scores on a Mortgage Payment

For the latest figures, search for “my FICO loan savings calculator.”

2. Save as much money as possible for a down payment.

3. Calculate the total amount of buying a new house.

4. Get the most conservative, boring loan possible.

5. Don’t forget to check for perks.

Many state and local governments offer benefits for first-time home buyers. Check out hud.gov/topics/buying_a_home to see the programs in your state.

6. Use online services to comparison shop.

You may have heard about zillow.com, which is a rich source of data about home prices all over the United States. Also check out redfin.com and trulia.com, which give you more information about buying a house, including tax records and neighborhood reviews. For your homeowner’s insurance, check insure.com to comparison shop.

3. You can’t have the best of everything, so use the P word. Priorities are essential.