Renting or Buying… Either Way You’re Paying a Mortgage

There are some people who have not purchased homes 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 yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained this month 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’ 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 with 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 4.23% 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.

9e564ffe bbc0 4fa2 bc3a 04b290f25ead 5a2cef63 2f6f 479f 8408 96835392de77 4a92717d a91b 4e76 8d95 a430c293e043 ee6a7b1b f27c 4b87 b3c2 6bd6e23e51e3 d72f1942 361a 4d0c 9fbc 313a81019b5e 10f034ce 24c2 477e 9503 a412865fe791 f850f7dd 3403 4eca a84f 1577443bd8b6 e111befb f3b8 49dc 9aea 5df782537f28 a99df410 f779 4294 b217 fa1526463c5f c5fff2fd b970 464d a729 20ace8a7d991 1e58865e 49f3 4ca8 a08b 514e6fdee5f1 11e70397 37c0 4986 b155 617895979266 1d3ec4c2 bc9c 4f3f 9f9e 87746757bd7b a3d416b7 6757 4731 aac9 c8d6adaa035a 02d81ca2 1b9b 4319 b644 3195d96bcdb5 09dac0b9 64dd 4634 9f05 0f584385efc6 b11cd25c 68a3 4c66 af23 ef3bb4685c50 3b4a722c 63cd 49fd b92d 984b9f21d7b9 6fa80f4a 151b 48a1 a0ec 98979685ce47 09d107a3 35e8 4b82 be70 4c461400ce02 d6743f1b 43de 4bab ac1e a4975dcb8653 9b740358 9da5 4a9c 8257 d76c01b0cd61 08b49ec8 e695 40eb af73 6ee358df2105