Whether you are renting or buying, you are paying someone’s mortgage- it’s something to think about! There are people that are afraid of taking on a 15 or 30 year commitment to a mortgage but unless you are living with parents or friends rent free, you are helping pay a mortgage. If not yours, then your landlords……And he is gaining on the equity and any tax breaks.
While renting in the short term may make sense, you want to consider buying if you want to gain equity and have something to show for the mortgage payments! If you are serious about your finances, you should look at buying instead of renting – you are making someone else rich when you rent as they get your payment and the appreciation as the home increases in value. Yes, there are times where a property may decrease in value – we saw it about 10 years ago -but it’s not the norm. Typically your home will appreciate and you will be able to sell at some point and show a profit! Do you want to give that profit to your landlord?
By buying a home, you are keeping your payments stable – if you have a 30 year mortgage, your payment will not change – other than your property taxes and insurance. Rents can keep going up – you rarely see a rent decrease. This is a great way to know what your payment will be for the next 30 years – other than possible tax and insurance changes.
Interest rates are still low – yes, they have been increasing, but they are still much lower than they were several years ago – it’s still a great time to buy. Whether you are thinking about buying a new home, a vacation home or maybe your first home – it’s still a great time to buy!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.