RSSRent vs. Mortgage
Feb 12
Budgeting, Debt, General No Comments
In the world of personal finance, there’s not much debate about whether someone should rent or borrow to buy a place to lay their head. Most financial gurus agree that it usually is best for people to buy a home if they can afford the monthly mortgage payment. Each financial know-it-all has a formula that they use to gauge whether or not someone can afford to take on a mortgage. One financial ministry says spend no more than 40% of your take-home pay on total housing costs, including your mortgage. A popular radio/television host and author advises his followers to take out a 15-year, fixed rate mortgage with a monthly payment that’s no more than 25% of your take home pay, even though he says he would save and pay cash.
Some of the reasons given to support the position that getting a mortgage is better than renting is that real estate traditionally has risen in value and renting is just throwing away money. I may not do extensive writing on this subject, but I will do a few interviews with people who have both rented and borrowed to buy and see how they feel about their decision in retrospect. Watch the videos. I believe they will be helpful to renters, owners, and those deciding if or not they want to leave the nest.
Peace & Thanks,
Jamel Black
Foresight Christian Financial Coaching