Whether You Rent Or Buy Either Way You Are Paying A Mortgage

Dated: 02/05/2018

Views: 106

Whether You Rent or Buy, Either Way You're Paying a Mortgage! | MyKCM



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.

Blog author image

Jason McLaughlin

THERE WERE TWO THINGS I WANTED TO DO WHEN I GOT OLDER! Number One: Make sure that I had the ability to take care of people in time of need. Number Two: Be involved in real estate. As for ....

Latest Blog Posts

Coming Soon Listing In Parker

Have you ever thought of having a beautiful home that looks at the mountains out your front window and the plains from the back? Well, you are in luck with this beautiful 5-bedroom, 3-bath home that

Read More

First Time Home Buyers Continue To Put Down Less Than 6 Percent

According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time homebuyers purchased their homes with down payments below 6% in 2017.Many

Read More

Top Improvements Homeowners Make

You could say that Americans tend to be a little obsessed with self-improvement. (OK, maybe a lot.) So it’s no surprise that we’re also a little – OK, a lot – obsessed with

Read More

What Does The Denver Broncos Have To Do With Real Estate

$23,000,000 1800 Triple Creek Ranch Road, Silverthorne, CO 80498This beautiful private luxury ranch sitting on approximately 255 acres is being sold in Summit County and a price of $23 million

Read More