This is a question that a lot of people are asking right now. Renters who have watched the housing debacle of the past year and half are probably feeling relieved that they didn't get involved. However, the main cause of the housing situation was due to banks loaning more than the consumer could comfortably afford to pay. If you were told that you could only afford a starter home worth $200,000, then you would find a home within that price range. Conversely, if you are told that you can get a loan for $300,000, then you start looking at homes in that price range. So, since the banks don't have your best interest in mind, you better. How, you ask? Education. Never let a bank loan officer tell you how much you can afford. In researching for this entry I found a website that has an easy to read/understand chart and calculator. It gives a clear view of a $200,000 mortgage vs paying $1000 a month on rent. I hope if you are asking yourself the rent vs buy question that you find this helpful. Please feel free to contact me with any further questions you may have. Link to chart and calculator.