Welcome to Mortgage Guide
Mortgage Information Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Mortgage Loa Versus Renting
from: Deb St. George - HomelessInKingCounty.comThere is a big debate these days whether it even pays to take out a mortgage loan or if renting ends up being cheaper. Since most people can’t buy a house outright with cash, and depend on getting a mortgage loa, there are some reasons that might make renting more attractive in the short-term. However, if you are looking for stability, a way to build wealth and a home you can call your own – a mortgage loa is the way to go.
The Benefits of Renting
Renting allows a certain mobility in your lifestyle. You sign a lease for a particular timeframe, and if you have to move you can still leave by paying a penalty. On the other hand, if you own your home, you can’t get out of your mortgage simply by moving. You have to sell the house and that can be a problem if your job takes you to many places. If you are very mobile, it’s difficult to make up the 6% you will have to pay the real estate agent to sell your home.
You do have fewer maintenance issues when you rent. If something breaks, you just call the landlord. A mortgage loa does not cover the monthly expenses of maintenance and they can cost a lot. If your roof needs to be replaced, you will spend in the thousands of dollars. However, if you rent the maintenance and appliances are taken care of by the leasing company.
The Benefits of a Mortgage Loa
While these types of benefits for renting are huge, there can be even bigger rewards for buying. When you rent, all of the money you spend for rent is not tax-deductible and does not serve to build up equity for you. In that sense, rent can be like throwing your money away. If you buy, you can find ways to generate equity and use the interest on the home mortgage loa payments as a tax write-off too. This can put you in a lower tax bracket and easily save you thousands, on top of the thousands you make in equity in a rising market.
There are many different types of mortgage loans out there. You can get an adjustable rate mortgage loa or a fixed rate mortgage. Often, the payments you make on a mortgage can be less than what you would pay for an apartment. However, this all depends on the housing market. Right now, there are some markets where rentals are cheaper than buying, so be sure to check your local market to find out which is best for you.
Mortgage Information News
Research and Markets: Mortgage Loans in Italy
Dublin - Research and Markets has announced the addition of the "Mortgage Loans in Italy" report to their offe
Read more...Mortgage-Bond Transparency Plan Meets Resistance From Traders
The Financial Industry Regulatory Authority’s latest plan to increase transparency in a corner of the $6.5 trillion mortgage-bond market is meeting resistance from Wall Street’s largest lobbying group.
Read more...Gateway Mortgage Group Enters Omaha, Neb. With Establishment of New Branch
Gateway Mortgage Group, a privately held mortgage company providing conventional, FHA and VA loans through 50 retail branches nationwide, has acquired its largest branch and entere
Read more...Firm Capital Mortgage Investment Corporation announces monthly cash dividends
Firm Capital Mortgage Investment Corporation announces monthly cash dividends
Read more...Fixed Mortgage Rates Hit Record Lows Again
MCLEAN, Va., May 17, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey ® (PMMS ® ), showing average fixed mortgage rates again hitting new record ...
Read more...Bankrate: Mortgage Rates Set 4th New Record in a Row
NEW YORK, May 16, 2012 /PRNewswire/ -- Mortgage rates fell for the seventh time in the past eight weeks and set a new record for the fourth consecutive week. The average rate on the benchmark 30-year fixed ...
Read more...Mortgage Lender Residential Finance Corp. Explains Benefits of HARP 2.0
When June Snow first looked into refinancing her interest-only mortgage, she was told it would be impossible because the value for her three-bedroom, two-bath ranch style home was not in the necessary range.
Read more...