Paying Your Mortgage Or Your Landlords

Dated: 11/11/2014

Views: 814

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.
Blog author image

Paul Snyder III

I am a specialist in the management and sale of bank owned AND investment properties throughout SE and Central Pennsylvania. Our team of (14) real estate agents and (3) support staff are here to e....

Want to Advertise on this Site?

Latest Blog Posts

The Cold Hard Facts On Protecting Potted Plants

By:Susan Morgan2011, Dorling Kindersley LimitedAn attractive container display provides cheerful color and a delicious spicy scent on winter days. Winter container gardening is tough — you have

Read More

Over Wintering Plants

How to Store Non-Hardy Plants through the WinterBY MARIE IANNOTTIGardeners in cold climates never know what to expect during the winter. We may have snow, we may have unusually warm conditions,

Read More

How To Take Care Of Plants In Winter

No season is harsher on plants and flowers than winter, with cold temperatures and bad weather meaning that it can be difficult for our favourite blooms to survive.If you don’t want to have to

Read More

Winter Weather Preparation

There are a number of ways that winter storms can impact a region and its residents.Winter storms can create a minor inconvenience or paralyze an entire city. These storms cancreate many hazards,

Read More