Whether You Rent Or Buy Either Way Youre Paying A Mortgage

Dated: 02/06/2018

Views: 107

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.22% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Image title


Blog author image

Jenetta Miller Broker

Highly energetic, motivated and technology driven Jenetta offers over 20+ years real estate, business sales and auction experience. "Your Real Estate Destination" Jenetta Miller/President Ha....

Want to Advertise on this Site?

Latest Blog Posts

Ask These Questions Before You Buy

In reality, every home needs maintenance and most homes need work of some sort right?Many of these questions could be answered by your Realtor®, the homeowner or an inspector while others are

Read More

Homeowners Appraisers See The Most EyetoEye On Price In 3 Years

Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts

Read More

4 Steps To Follow When Presenting An Offer In Todays Market

4 Steps to Follow When Presenting an Offer in Today’s Market! So, you’ve been searching for that perfect house to call a ‘home,’ and you’ve finally found it! The price is right, and

Read More

Selling Your House On Your Own Could Cost You

Selling Your House on Your Own Could Cost YouIn this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a For Sale by Owner;(

Read More