A Lot Of People Rent The Same Home For Ten Or 15 Years

Category: Finance, Mortgages.

Many people spend thousands of dollars every year renting homes. It is often these people that believe that it is cheaper for them to rent than it is to own, but in most cases this is simply not true.

Many times the homes are not exactly what the person wants, they are simply making due. When you have a mortgage you are still making monthly payments, but you are making monthly payments toward something that is yours and will be a great asset to you someday. Monthly Mortgage Payments= Equity. Many experts agree that real estate is the only safe investment these days, so why not make your own investment, a little bit, month by month at a time. If you are renting you are throwing away money month after month. Why should you be putting money in someone else s pocket instead of building equity in something that will be yours if you keep making the payments on it for the term of the loan? The thing is, if you are renting a house you can probably buy a house and make monthly mortgage payments for the same amount as or less than what you are paying now.

When you think of it this way, buying a home suddenly makes a lot more sense than you used to. There are many loan programs out there that will work for you. If you have been putting off buying a home because you do not want to get stuck owning a home you should know that many people buy homes and end up selling them within just a couple years. Many that work perfectly for those that will not be in the same home very long. It really is possible. If this is the situation you are in, you will find that adjustable rate mortgages can offer you really low interest rates for the first couple years of the loan so you can buy a home, build equity in it for a couple years, and perhaps sell for a profit when you are ready to move. When you rent you are missing out on the opportunity to invest in something that can make you money while you live in it.

When you are ready to sell then you are out nothing because you are making affordable payments, but when you are able to actually make money on the deal you will see the value of buying a home. Many markets are booming right now or getting ready to, which means you can buy a home and make affordable monthly payment and simply go about your business while the value of the home increases. If you are ready to settle into a home for the long haul you will also find that buying simply makes more sense. Do you know that a lot of people pay off a house in that time? A lot of people rent the same home for ten or 15 years. Imagine if you bought a house tomorrow and lived in it for 10 years, all the while the market value was growing and you were paying on it.

Stop throwing your money away and invest it. Then, when you were ready to move you would be able to sell and make a nice profit. You have nothing to lose when you do this. You only have equity to gain!

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