There are some people who have not purchased homes yet becausethey are uncomfortable taking on the obligation of a mortgage. Everyone shouldrealize that, unless you are living with your parents rent-free, you are payinga mortgage – either yoursor your landlord’s.
As Entrepreneur Magazine, apremier source for small business, explained in their article, “12 Practical Steps to Getting Rich,”
“While renting on a temporary basis isn’t terrible, you shouldmost certainly own the roof over your head if you’re serious about yourfinances. It won’t make you rich overnight, but byrenting, you’re paying someone else’s mortgage. In effect, you’re makingsomeone else rich.”
ChristinaBoyle, Senior VicePresident and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explainsanother 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 30years – unlike rents which will continue to rise over the next three decades.”
Asan owner, your mortgage payment is a form of ‘forced savings’ which allows you to buildequity in your home that you can tap into later in life. As a renter, youguarantee the landlord is the person with that equity.
Interestrates are still at historic lows, making it one of the best times to secure amortgage and make a move into your dream home. Freddie Mac’s latest report showsthat rates across the country were at 3.94% last week.
Whetheryou are looking for a primary residence for the first time or are considering avacation home on the shore, now may be the time to buy.