Castle Rock | Rent or Buy? Either Way, You’re Paying Someone’s Mortgage

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

As Entrepreneur Magazine, discussed 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 vs. 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’ allowing you to build equity in your home.  As a renter, you guarantee the landlord is the person with that equity.

Real Estate Bottom Line

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.  Let’s connect to discuss your unique situation to see if buying a home makes sense.