Whose Mortgage Do You Want To Pay Yours Or Your Landlords

Dated: 02/05/2019

Views: 983

Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s?

Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s? | MyKCM

There are some people who haven’t purchased homes because they are uncomfortable taking on the obligation of a mortgage. However, 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 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.”

With home prices rising, many renters are concerned about their house-buying power. Mike Fratantoni, Chief Economist at MBA, explained:

“The spring homebuying season is almost upon us, and if rates stay lower, inventory continues to grow, and the job market maintains its strength, we do expect to see a solid spring market.” 

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.

As mentioned before, 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 4.46% 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.

Latest Blog Posts

3 Reasons This Is NOT The 2008 Real Estate Market

3 Reasons This is NOT the 2008 Real Estate MarketNo one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a

Read More

3 Reasons To Use A Real Estate Pro In A Complex Digital World

3 Reasons to Use a Real Estate Pro in a Complex Digital WorldIf you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all of your

Read More

What You Need To Know About The Mortgage Process

What You Need to Know About the Mortgage Process [INFOGRAPHIC]Some Highlights: Many buyers are purchasing homes with down payments as little as 3%. You may already qualify for a loan, even if

Read More

Homeownership Is The Top Contributor To Your Net Worth

Homeownership is the Top Contributor to Your Net WorthMany people plan to build their net worth by buying CDs or stocks, or just having a savings account. Recently, however, Economist 

Read More