Whether You Rent or Buy – You’re Paying a Mortgage
Some people have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Unless you are living with your parents rent-free, you are paying a mortgage…either yours or your landlord’s!
According to Entrepreneur Magazine, a premier source for small business, 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 owning a home 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 homeowner, your mortgage payment is a form of “forced savings”, allowing you to build equity in your home. As a renter, you guarantee your landlord is the person accumulating 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.
Real Estate Bottom Line
Whether you are a first time homebuyer, looking to move to a larger home, decided to down-size or are considering a vacation home at the beach, now may be the time to buy. Let’s talk!