7 big money myths

Renting is a waste of money

Owning a home does offer some financial advantages, including appreciation and tax deductions, but there are times when renting is the smarter financial decision.

"For a long time, owning a home was a marker of success, but people have started to question that," explains Michael Corbett, real estate expert for Trulia.com and author of Before You Buy. "There are a lot of financial advantages to renting."

Corbett cites the expenses associated with homeownership as one of the main reasons it might make more sense to rent: In addition to costs like taxes, maintenance and association fees, buyers without a 20% down payment will be hit with higher interest rates and additional fees for private mortgage insurance that push the cost of owning a home even higher.

Writing a rent check is a much smarter financial decision than purchasing a home you can’t afford and losing it to foreclosure.

Our Rent vs. Buy House Calculator can help you decide what's the best financial decision for you.