You Pay A Mortgage Whether You Rent Or Buy

Dated: 03/27/2017

Views: 72

Every once in a while I will run into someone who has the capability of buying a home, but doesn't because they're just not comfortable with the idea of paying a mortgage each month. What I try to get them to realize is that whether they're writing the check to the bank for their mortgage, or to their landlord, they're paying someone's mortgage! Why wouldn't you want to pay towards your own mortgage, get the tax benefits of home ownership, and build wealth at the same time? 

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." 

I think of a home as a piggy bank shaped like a house, aside from any potential appreciation of your home, as you pay each month you're building equity that you can tap into later in life. Even if your home never appreciates in value, with the tax benefits and equity you build by simply making your monthly payments you'll end up ahead over time. As a renter you have a place to live for the month, but your landlord builds that wealth.

Interest rates are still at historic lows, which make it a great time to get into the housing market! One of my favorite things as a REALTOR is watching families build their wealth and secure their financial future through home ownership! Call me! (760) 936-8576

Christy Lundy
Re/Max Home Center
CA BRE #10961048
(760) 936-8576

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Christy Lundy BRE#01961048

Christy became a Realtor after a 15 year career with a national non-profit, where she focused on helping people improve their lives. She brings that focus, drive, and concern for her client's needs to....

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