Uncategorized

Rent or Buy: Either Way You’re Paying A Mortgage

By June 7, 2016 No Comments
Rent or Buy: Either Way You’re Paying A Mortgage | Keeping Current Matters

There are some renters that have not yet 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 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’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:

Rent or Buy: Either Way You’re Paying A Mortgage | Keeping Current Matters

Bottom Line

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 with home values and interest rates projected to climb.

Green Team Realty

Our mission is to help people find the perfect space for their home or business. To make the process an easy, fun and pleasant experience. 25+ years experience. Tracy Green is a REALTOR® in the Fargo Moorhead area offering real estate services to buyers and sellers. Tracy grew up in the area, attended college here and has extensive knowledge of the local real estate market to help you make informed decisions. She brings her unique personal flair to every situation and is known for going the extra mile to create a memorable and enjoyable experience for each client.
Green Team Realty
Green Team RealtyFriday, January 19th, 2018 at 1:41pm
OPEN HOUSE THIS SUNDAY, 1/21!
1517 4th Ave S, Fargo
1-2:30 pm

Beautiful original features in this 1920s 2-story. Wide baseboards, trim and refinished original hardwood stairs and floors throughout the whole house. 3 bedrooms, 1 full bathroom up, main floor front sunroom, living room, half bath, dining room, kitchen with stainless steel appliances including a gas stove. Huge patio door to deck and fully fenced backyard. New gutters.

Tract Green, Realtor/Broker
Green Team Realty
701-388-3503
3301 13th Ave S, Ste 102, Fargo ND
www.GreenTmRealty.com
tracy@GreenTmRealty.com
Green Team Realty
Green Team Realty
Green Team RealtyThursday, January 18th, 2018 at 2:46pm
Everyone loves a little extra cash!!
Green Team Realty
Green Team RealtyThursday, January 18th, 2018 at 1:15pm
Help us celebrate our 6th Anniversary! We are giving away $1,000 to one of our lucky Facebook followers. All we have to do is reach 1,000 likes by April 2, 2018. You can help!

Go to the Green Team Realty FACEBOOK PAGE and LIKE IT. Then like, comment on and share this post! It's as easy as that to get registered to win. If we reach our goal of 1,000 PAGE LIKES the winner will be announced the week following our anniversary!

Make sure you like our PAGE too, not just this post!
Green Team Realty
Green Team RealtyWednesday, January 17th, 2018 at 1:07pm
There is no truer statement when it comes to your house ductwork than "Out of sight, out of mind!". Why not take the time during these frigid temps and start spring cleaning early. It will save time when you'd rather be outside during warmer months and boost healthier indoor living. Photos are before and after views from Big Fish Service Company. You can get a free online quote or call 701-306-7026!
Green Team Realty
Green Team RealtyTuesday, January 9th, 2018 at 10:52am
Green Team Realty
Green Team RealtyMonday, January 8th, 2018 at 11:15am