There are some renters that have not yet purchased a home as they are uncomfortable taking on the obligation of the mortgage. However all renters need to realize that, unless you are living with your parents for free, you are paying a mortgage – your landlord’s.
Sure you can possibly get out easier (without paying too much to break a lease) but being an owner, your mortgage payment acts like a type of “pushed savings” that allows you to build equity in your home that you can capture later in life when you sell. As far as investments go, home ownership is one of the safest assuming you keep the property long enough. As a renter, you ensure your landlord is the person with the equity.
Do you want to put your mortgage payment to work for you?
Christina Boyle, Senior Vice President and Head of Single-Family Sales & Relationship Management in Freddie Mac, describes another benefit of securing a mortgage versus paying rent:
“ With a 30-year fixed-rate mortgage, you’ ll possess the certainty & stability of understanding what your mortgage payment will be for your next 30 years – unlike rental prices which will continue to rise over the following three decades. ”
Lock in your housing costs for that next 30 years and guarantee you will be the one building wealth.