Rent and purchase? In our current economy, many ask whether it is better to buy a house than to rent.
“But does owning a home really trump? When the economy stumbles, housing prices fall and lending tightens, many housing experts set the usual wisdom. ” - Justin Evers, from usnews.com
With declining housing prices, increasing costs and great difficulty securing mortgages, many people make some real points when renting a home when buying a home when you are considering typical how people pay their mortgages:
- when the housing market falls, owning a home is a bit more than renting from a bank
- If the down payment was invested in a mutual fund, you could be financially
- tax breaks on owning homes are often not enough to offset the costs.
- home ownership comes with many other expenses - from maintenance to insurance to taxes, none of which builds equity
- the average family stays in the house for only six years
But how about home ownership advantages when do you plan to rent or buy a house?
- Have greater control over whether you stay or move - what if the landlord sells or raises the rent too high?
- You can choose pets without restrictions imposed by the landlord.
- Depending on your region, you can get more at home for the same monthly expense.
- The freedom to redo or redo what you like is yours.
You can use a rental calculator or buy to determine whether to rent or buy a house, but this is a comparison of the usual method of paying for a mortgage or rent. What if you could build justice and pay your mortgage faster What is the usual method?
We simply accept the fact that people usually take a 30-year mortgage, and with a deceased interest, they end up paying more than twice the original price by the time the house pays off. Thus, even with a mortgage loan of 6%, the effective interest rate is over 100%! During the first 5 years, most of your mortgage payment will pay interest without resorting to the principle, so you can also rent it financially.
There is a better way - this suggests a balance in deciding whether to rent and buy. What if you could build justice and pay off your mortgage 1/2 to 1/3 of the time:
- without refinancing
- no additional charges
- without changing the budget
Using this system, you get the benefits of owning property and financially forwards - even in a downturn. For more than 10 years, Australia has been using this method, and now more than 50% of mortgage loans are doing so. The system has recently been adapted to the US banking system, so now you can use the “bankers” to your advantage. If you are currently paying a mortgage on your home or you are considering your rental or purchase options, this system can help you maximize how you use your money.
To determine how much faster you could build equity and pay off your mortgage, I recommend that you fill out the Money Merge online analysis form using your mortgage data. It costs nothing but a few minutes of your time, but it can save you a lot of money and work for you, not at a bank.
