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

Dated: 02/05/2018

Views: 220

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

Jason has lived in the Golden and Arvada area for more than 25 years attending Golden High School and then later gaining a Bachelors of Science Degree in Organizational Leadership and Emergency Manage....

Latest Blog Posts

Reasons To Buy A Home This Summer

 Reasons to Buy A Home This SummerHere are four reasons to consider buying today instead of waiting.1. Prices Will Continue to RiseCoreLogic’s latest U.S. Home Price Insights 

Read More

How You Live

My husband and I recently took a road trip.  One thing we both like to do.  Is it true that people get comfortable thinking most others live like they do?  It makes sense.  We

Read More

What Do I Need To Qualify For A Loan

Before you start searching for your new home, the first step is to speak with a lender anddetermine your budget. This is being pre-qualified for a loan. Once you find the right home,then your lender

Read More

A Quick Understanding Of Foreclosures

Many home buyers see a foreclosure as an opportunity to find a great home for a bargain price. While foreclosures can offer some nice discounts, understanding how foreclosures work and how this

Read More