Whether You Rent Or Buy Youre Paying A Mortgage

Dated: 08/22/2016

Views: 173

Spending too much?Whether You Rent or Buy, You’re Paying a Mortgage


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 30 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. Freddie Mac’s latest report shows that rates across the country were 3.43% 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.


Share this article with a friend: http://goo.gl/lGk3ZL


Anitra Williams is a full time Real Estate Professional in DFW with JB Real Estate Group.  Contact Anitra today for a free Home Evaluation or for the free guide - Steps to Home Ownership! 

Email: info@AnitraWilliams.REALTOR
Text: 972-362-9244 
Call: 214-316-1181

Anitra Williams Realtor
Blog author image

John Brooks

Hello! My team and I are passionate about helping people build stability and wealth through solid investments in real estate, either for their personal residence or for investment purposes. We also LO....

Latest Blog Posts

Incredible 19 Acre Ranch Estate In Peaster ISD

Incredible 19 acre ranch estate with magnificent views in the desirable Quail Springs Ranch just outside of Weatherford, TX. This property has privacy and serenity, yet easy accessibility.

Read More

Keys To Success In Selling A Home

As you might imagine, I'm super-pumped about our Video Series, "Keys to Success in Selling your Home"! Check out these awesome tips and tricks to help YOU maximize your return and

Read More

Keys To Success In Buying A Home

Wondering how to succeed in buying a home in today's super-strong, competitive real estate market? John Brooks, Broker with JB Real Estate Group in N. Texas shares insights gained from helping

Read More

UBERs New Electric JUMP Bikes Make It To Dallas

You may have seen the JUMP electric scooters around town, but now Dallas is adding rechargeable electric bikes to the mix! Riders will still have to pedal as they ride the bikes, but the motors do

Read More