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2018-08-27 15:32:03
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.”

With home prices rising, many renters are concerned about their house-buying power. Mark Fleming, Chief Economist at First American, explained:

Over the last three years, renter house-buying power has increased fast enough to keep pace with house price appreciation, so the share of homes that a renter can afford to buy has remained the same since 2015.

Although mortgage rates are expected to rise, they are still low by historic standards, and real household incomes are the highest they have ever been. Assuming this trend continues, our measure of affordability, which takes into account income, interest rates, and house prices, indicates thathomeownership is still within reach for renters.”

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 4.51% 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 Archive
2018-12-11 11:01:29
How to Simply Increase Your Family Wealth by Paying for Housing

2018-12-10 12:36:53
What If I Wait A Year to Buy a Home?

2018-12-07 15:09:36
The Tale of Two Markets

2018-12-06 14:15:21
Try Just One More Time

2018-12-05 18:11:20
Where Are Interest Rates Headed in 2019?

2018-12-04 11:39:33
Homeowners Aged 65+ Have 48x More Net Worth Than Renters

2018-12-03 13:05:09
4 Reasons to Buy A Home This Winter!

2018-11-30 21:00:10
7 Items to Check Before the Big Freeze

2018-11-29 11:38:26
Further Proof It’s NOT 2008 All Over Again

2018-11-28 16:47:22
24% of Renters Believe Winter is the Best Time to Buy a Home

2018-11-27 23:05:22
The #1 Reason to Not Wait Until Spring to Sell Your House

2018-11-26 13:26:24
Buyers: Don’t Be Surprised by Closing Costs!

2018-11-21 17:02:47
3 Things Homeowners Are Thankful For

2018-11-20 08:56:10
Females Are Making It a Priority to Invest in Real Estate!

2018-11-19 15:57:52
7 Reasons to List Your House For Sale This Holiday Season

2018-11-16 15:07:50
The Cost of Renting vs. Buying a Home

2018-11-16 07:41:28
Home Sellers in Q3 Netted $61K at Resale

2018-11-12 11:50:14
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2018-11-09 14:48:08
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2018-11-08 09:17:02
75% of Renters Have Been Misinformed

2018-11-07 12:23:55
Why Has Housing Supply Increased as Sales Have Slowed Down?

2018-11-06 08:36:44
2 Myths Holding Back Home Buyers

2018-11-02 15:27:21
Are We Heading Towards Another Housing Bubble?

2018-11-01 12:34:52
How Will Home Sales Measure Up Next Year?

2018-10-31 10:19:23
Taking Fear Out of the Mortgage Process

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