The Joy of Refinancing

Just around five years ago, we’ve bought our little home. Five years ago we’ve signed on the dotted line and became proud owners of our own townhouse. For young immigrants like us, it’s kind of a big deal. For somebody who had a negative net worth and was completely broke just few years prior to this, it is even a bigger deal.

Surprise-surprise, I haven’t won the lottery since then, so the mortgage is still with us five years later; which isn’t at all this surprising given the fact that I never buy lottery tickets. So, our mortgage is up for renewal, and we’re getting ready to sign the refinancing documents.




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Rent vs. Own - Five Years Later

In case you haven’t noticed


I happen to be a financial nerd. When normal people go to Costco to buy some shampoo, they usually pick whatever brand they prefer or whichever smells better. I, on the other hand, start instantly calculating the amount shampoo units that can be acquired per dollar thus finding the best deal. Not really because I want to save money, but I want to compare things in financial terms as opposed to brands. Heck, I’ve calculated how much money I’ve spent on cigarettes back when I used to smoke and how much it cost me overall. I’ve even calculated return on investing into a shaver and shaving my hair as opposed to getting my hair cut every month (13,940%, risk free).

So, with our 5-year mortgage term coming to an end and going through a process of refinancing, I wouldn’t be me if I didn’t calculate what was more beneficial to us - renting for 5 years or putting money down on our own home.

Rent vs. Own is one of those topics people will never get tired of discussing. Just like movie buffs keep arguing whether or not Han Solo shot first and truck enthusiasts keep knocking Ford against Chevy, people interested in personal finance will never get tired of discussing buying your own place vs. renting.

But discussing things in general ain’t no fun. It’s also quite pointless because everything depends on your own situation. So, I’ve actually crunched some real measurable numbers using these five years as an example to figure out whether or not we’ve lost money on our home purchase.

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