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Mortgage Loa Versus Renting
from:There 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.
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1st Mortgage News
More than 30% of mortgage borrowers still underwater - CNNMoney
 Los Angeles Times | More than 30% of mortgage borrowers still underwater CNNMoney NEW YORK (CNNMoney) -- Despite rising home prices, more than 30% of borrowers, or close to 16 million homeowners, were underwater on their mortgage during the first quarter, according to Zillow. The percentage of borrowers who owed more on their home ... Despite Home Value Gains, Underwater Homeowners Owe $1.2 Trillion More than ... One in three mortgage holders still underwater Zillow: More than 30% of mortgages underwater |
Winthrop Realty Trust Buys First Mortgage Loan on 326000 SF Ft. Lauderdale Asset - Citybizlist Real Estate
Winthrop Realty Trust Buys First Mortgage Loan on 326000 SF Ft. Lauderdale Asset Citybizlist Real Estate Boston-based Winthrop Realty Trust has acquired a first mortgage loan secured by a 326000 square foot commercial building in Ft. Lauderdale, FL. The asset has 47000 square feet of retail and 279000 square feet of office space that is currently 74.4 ... Winthrop Realty Trust Acquires Matured Mortgage Loan |
30-year mortgage rate hits fourth straight record low - Washington Post (blog)
 CBS Moneywatch | 30-year mortgage rate hits fourth straight record low Washington Post (blog) By JD Harrison Mortgage rates held fairly steady this week, with the 30-year fixed rate average creeping slightly lower to yet another all-time record, according to the latest data released Thursday by Freddie Mac. The 30-year slipped to yet another ... PRESS RELEASE: Freddie Mac Says Historic Lows For Fixed Mortgage Rates Hold Steady Fixed mortgage rates hover at record lows FreddieMac Reports Historic Mortgage Rates Still Staying Low |
UK Lending Drops as Recession, Interest Rates Take Toll - Wall Street Journal
UK Lending Drops as Recession, Interest Rates Take Toll Wall Street Journal By Ilona Billington LONDON (Dow Jones)--Mortgage and business lending in the UK dropped in April as the slowing economy, rising interest rates and growing concern over Greece's future in the euro zone damped demand, and after a tax break for first-time ... UK April mortgage, business lending weakens |
Regulator queries Swedish banks' mortgage margins - Reuters
Regulator queries Swedish banks' mortgage margins Reuters The FSA said banks had a return on equity (ROE) on mortgages of some 22 percent in the first quarter, compared with overall profitability of 10 to 13 percent last year. " They are earning roughly twice as much on mortgages as other operations," ... Swedish Banks' Margin On Mortgage Loans Widens |