Stop Paying Your Landlord’s Mortgage!
TO BUY A HOME : Call 301-613-2043
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 The Joint
Center for Housing Studies at Harvard
University
“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—as Americans intuit—end up making more financial sense than
renting.”
Christina
Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship
Management at Freddie Mac, explains another 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 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 have equity in your home that you can tap into later in
life. As a renter, you guarantee the landlord is the person with that equity.
The graph below shows the widening gap in net worth between a
homeowner and a renter:
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