Whether You Rent or Buy, You’re Paying a Mortgage

mortgage3-150x150Whose mortgage are YOU paying?  Not paying a mortgage you say because you are renting?  Then you are paying your landlord’s mortgage and allowing them to get the benefit of your hard earned dollars to lower their investment and pay off their costs.  They are also claiming the tax deduction that should be yours!  Read this article below courtesy of Keeping Current Matters to fully understand how your rent payments each month are paying off your landlord’s mortgage and giving them equity instead of you.  Unless you are living rent free with your parents you are paying a mortgage.  Why not make it yours?  Call me today, there are still affordable homes in the Naples area.  We can find the perfect home for you.

Courtesy of 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 yours or your landlord’s.

As 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—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 paying a mortgage30 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.

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.

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.

Remember it is always toasty in Naples and you deserve your piece of sunshine and a home of your own.  Now is the time to buy and there are many affordable homes in the Naples area.

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