There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage â€“Â either yours or your landlordâ€™s.
AsÂ Entrepreneur Magazine,Â a premier source for small business,Â explained in their article, â€œ12 Practical Steps to Getting Richâ€?:
â€œWhile renting on a temporary basis isnâ€™t terrible, you should most certainly own the roof over your head if youâ€™re serious about your finances. It wonâ€™t make you rich overnight, butÂ by renting, youâ€™re paying someone elseâ€™s mortgage. In effect, youâ€™re making someone else rich.â€?
Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organizationÂ atÂ Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:
â€œWith a 30-year fixed rate mortgage, youâ€™ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years â€“ unlike rents which will continue to rise over the next three decades.â€?
As an owner, your mortgage payment is a form ofÂ â€˜forced savingsâ€™Â which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building 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.Â Freddie Macâ€™sÂ latest report shows that rates across the country were at 4.22% last week.
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.
Source: Keeping Current Matters