Renting to save property taxes and mortgage interest? Surprise! You're not.

Dated: 02/04/2019

Views: 68

Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s?

Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s? | MyKCM

There are some people who haven’t purchased homes because they are uncomfortable taking on the obligation of a mortgage. However, 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 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.”

With home prices rising, many renters are concerned about their house-buying power. Mike Fratantoni, Chief Economist at MBAexplained:

“The spring homebuying season is almost upon us, and if rates stay lower, inventory continues to grow, and the job market maintains its strength, we do expect to see a solid spring market.”

As an owner, your mortgage payment is a form of ‘forced savings,’ 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.

As mentioned before, 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. Freddie Mac’s latest report shows that rates across the country were at 4.46% last week.

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.

Blog author image

Michael Dryden

Michael Dryden has helped North Tarrant County families buy and sell homes using the skills developed over more than fifty years of work experience and over 25 years in North Tarrant County. Michael....

Latest Blog Posts

Selling a Home This Summer

4 Reasons to Sell This Summer [INFOGRAPHIC]Some Highlights:Buyer demand continues to outpace the supply of homes for sale. This means that buyers are often competing with one another for the few

Read More

First Time Buyers Saving For Their Dream Homes

Young First-Time Buyers Are Saving for Their Dream HomesYoung buyers (Millennials & Gen Z) have waited longer than previous generations to enter the housing market for their first home. However,

Read More

Eight Rules of Home Buyer's Etiquette

7 Unwritten Etiquette Rules Every Home Buyer Should KnowBy Liz Alterman | Jan 22, 2016MiltonBrown/Getty ImagesYou like being under a microscope? Whatever your answer to that question

Read More

When You Can't Pay Your Mortgage

When "It" HappensBefore I became a REALTOR®, I worked in mortgage serevicing.  Those are the people who handle your payments and work with customers who meet challenges paying their.

Read More