To Rent Or To Own It Is Your Choice

To Rent Or To Own It Is Your Choice

Either Way You're Still Paying a Mortgage | Keeping Current Matters


There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s.

As a paper from the Joint Center for Housing Studies at Harvard University explains: 

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period. 

As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.

Bottom Line

No matter what stage of life you are in, owning  makes more sense than renting since home values and interest rates are still at bargain prices.  If you believe that your FICO score is too low to qualify for a mortgage, you should visit with a mortgage broker and learn just what you need to do to qualify.  If your credit has been affected by a bankruptcy or other factors, here is a good article on how to repair it.

http://credit.about.com/od/creditrepair/ss/creditrepair.htm


Remember you CAN own your home and stop paying someone else's mortgage.  It may take some good planning and work on your part, but it will be worth it in the end.

If you or someone you know is considering buying or selling a home in Northern Colorado, call or text me at (970) 567-0442, or simply text "Barbara" to (970) 237-3829.


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Author:
Phone: 970-567-0442
Dated: March 17th 2016
Views: 348
About Barbara: Barbara comes from a tradition of trust and believes in converting transactions into relationships. ...

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3665 JFK Parkway Building 2 Suite 300
Fort Collins, CO
970-237-3829
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