Whether you own a home or you rent you are paying a mortgage. The only difference is that when you rent you have no control over your monthly payment. The person who owns the home is building equity, as a renter you are helping your landlord build equity and paying their mortgage at the same time.
Real estate is one of the best wealth building tools available to everyone. It provides a “forced” savings to help you build wealth in the long run. 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.”
Does your rent go up each year? Market demand for housing will continue to make rent rise. Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to 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.”
Rates are in an upward trend right now, but they remain at historic lows making this still a good time to purchase your home. Reach out to us if you are interested in purchasing your first home. We are mortgage brokers that have many different options to help you finance your new home; from low down payments, to programs if you only plan to be in your home for a short time.