Either Way, You’re Still Paying a Mortgage
by The KCM Crew on August 12, 2014 in Buyers / Keeping Current Matters
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 your mortgage or your landlord’s.
As a paper from 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.”
Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.
And, as an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still at bargain prices.
via Either Way, You’re Still Paying a Mortgage | Keeping Current Matters.
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Bill Salvatore is a member of Heroes Home Advantage, a cash back program for Real Estate buyers and sellers. The program honors Veterans and Active Military Members, Fire Fighters and First Responders, EMTs and Emergency Medical Personnel, Nurses, and Teachers. Through the Heroes Home Advantage program, Realtors give a portion of their commission back to the hero in the form of assistance with closing costs.
Bill is also President of the Phoenix Chapter of VAREP, Veterans Association of Real Estate Professionals. VAREP is focused on education and employment, making real estate transactions smoother and easier for Veterans and Military Personnel, and instructing other real estate related professionals in the best procedures for dealing with these transactions. VAREP is a nationwide non-profit organization with an impressive presence in the Phoenix area.
In founding AZVHV, Arizona Veterans Helping Veterans, Bill has spread his dedication to Veterans and Military throughout the real estate industry. An increasing number of local professionals have joined Bill in offering discounts to these heroes, not only when buying or selling a home but in all aspects of homeownership. AZVHV has developed a wide range of services and is gaining momentum every year. Membership is free. Bill’s only requirements are that businesses be legitimate and willing to offer a discount on their services to Veterans and Military Members.
You can contact Bill at Realty Executives East Valley, 1166 E Warner Rd. Suite 117, Gilbert AZ, 85296. Direct Phone: 602-999-0952. E-Mail: golfarizona@cox.net. Web: www.yourValleyProperty.com. Helpful web sites and blogs: www.AZVHV.wordpress.com / www.cashbackforheroes.wordpress.com / www.VAREP.wordpress.com
