At that point, the bank is buying the house, they’re just renting it to you for a very cheap rate, with the stipulation that you’re responsible for all of the maintenance and etc. The “purchase” is just you entering into a long-term rental agreement.
It an overall bad deal in my mind, but there are some upsides (not enough for me to take it). Assuming you get a fixed rate, you lock in your payment and your “rent”/mortgage will decline over time just from inflation eating away at it. I think most folks would love to have their rent decline by 3% every year. This effectively does that.
Additionally, if you are the homeowner instead of the renter, if the real estate increases in value, when you sell, you pocket the increase. There’s nothing like that in renting.
At that point, the bank is buying the house, they’re just renting it to you for a very cheap rate, with the stipulation that you’re responsible for all of the maintenance and etc. The “purchase” is just you entering into a long-term rental agreement.
Without the benefit of renting. Hell don’t forget home insurance.
It an overall bad deal in my mind, but there are some upsides (not enough for me to take it). Assuming you get a fixed rate, you lock in your payment and your “rent”/mortgage will decline over time just from inflation eating away at it. I think most folks would love to have their rent decline by 3% every year. This effectively does that.
Additionally, if you are the homeowner instead of the renter, if the real estate increases in value, when you sell, you pocket the increase. There’s nothing like that in renting.