I blogged a couple of days ago about the fact that I am looking to buy a condo. I have found an area I like and numerous options within that area that meet my "price range" requirements. So...what's the next step. That's right, you talk to a loan officer.

I will say this, what I am about to write below does not apply to people who "can't seem to control their spending." If you are a person like this, a house is a great way to "force" yourself to save, while at the same time, providing the most fundamental need we all share. This also probably doesn’t apply to those who have families to take care of. But I digress.

So I started to sit down and punch the numbers. I was debating between a 30-year fixed, a 30-year fixed but pre-paying it like it was a 15-year fixed, and a 15-year fixed. I would take the PMI hit as I still feel the 80/20 option is too sketchy - especially if it is a variable interest rate or even worse an interest only loan.

As I was doing this I had three "benchmarks" in place: 3-years, 5-years, and the life of the loan. I wanted to see at what "I owned" at each point. And the most fascinating thing revealed itself to me. I think it might be better to rent and save the rest. Take this for example. On a 30-year fixed mortgage, after 5-years I will have accumulated $7,027.80 in equity (on a $110,000 property). This is after paying a monthly payment of $1,072.44 THIRTY-SIX times (this includes taxes, insurance, PMI, association dues, etc...). Now, if I were to take that same monthly payment, subtract out rent ($545) and save the rest ($527.44) over the course of the same 5-years I will have accumulated $32,377.43 in savings! Here's the other deal, lets say I remain single for the rest of my life (lets pray not). If I carried this pattern of saving and renting over the course of a 30-year mortgage, making $527.77 deposits every month, at the end of the 30 years I would have $911,740.79 - there is no way my place would appreciate that much.

So this is what I don't get. Why the heck would anyone single, with no family, buy property under these circumstances. I keep thinking I must be missing something. But the numbers add up. The reason I am asking this isn't because I want to horde my money. However, we have all been very blessed by God, and I want to do the most I possibly can with the money He has blessed me with (including giving it away). So to me this all boils down to a question of stewardship - why give the bank money that God may want me to put elsewhere. Last weeks question was where to buy. But now I am asking, should I buy - and that is the question Shakespeare would be proud of.

P.S. For anyone who would like to see the worksheet I created, click here.