Compare Listings

Whether You Rent or Buy, Either Way You’re Paying a Mortgage!

Whether You Rent or Buy, 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, 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.

img

Matt Hernacki

Matt is a lifelong resident of Chicago's Northwest Suburbs. He has been helping people buy and sell their homes for 21 years.

Related posts

The #1 Reason to Sell Now Before Spring

The price of any item (including residential real estate) is determined by ‘supply and demand.’...

Continue reading
by Matt Hernacki

Which Comes First… Marriage or Mortgage?

According to the National Association of REALTORS most recent Profile of Home Buyers &...

Continue reading
by Matt Hernacki

Palatine Ranches

Ranches are very rare and in demand all over the Northwest suburbs.  Take a look at what is...

Continue reading
by Dominic Caruso

Join The Discussion

3 × 4 =