Should I Rent or Buy : Either Way You’re Paying a Mortgage
There are many renters that have not yet purchased a home because they are uncomfortable 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 your mortgage or your landlord’s. Many renters also think they do not qualify to purchase a home. We have found that in most cases they are qualified and sometimes their new mortgage payment will be less that their current monthly rental. Get your Free Report, click here: Why Rent When you can Buy!
As The Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.
That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management 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’. This savings allows you to have equity in your home that you can tap into later in life. You equity will also tend to grow as market values increase and your principal decreases. However, as a renter, you guarantee your landlord is the person with that equity.
Why not start building your own equity? Contact Pete Veres, ABR –Accredited Buyers Representative for a Free Buyers consultation and learn the steps to homeownership. Feel free to call Pete at 505-362-2005.
