Renting Vs Buying

We all want to purchase a home, it’s basically the American dream. Owning your own home is the dream of millions of people across America. If you are currently renting, I’m sure it is a dream of yours as well. For many years we’ve been told that you are literally “wasting” money by renting an apartment or a house.  The factor that is often left out when we discuss this, is that many people really have no other alternative than to rent. You’ll find that many people who decide to rent an apartment, are people who may have indeed tried to secure a home but was denied a mortgage.

Due to the recent economic issues with mortgages and credit, it will become even harder for renters to secure a mortgage unless they have excellent credit along with stable income. It’s easy for us to say, that you are wasting money renting, but we need to actually realize that many people have no choice. A few years ago with the introduction of balloon mortgages, it was to help renters realize the dream of owning their own home, and what was the result? We are now faced with the highest rate of foreclosures the nation has ever seen.

It’s going to be very important that when deciding to purchase your first home that you ensure that you understand that even though you are technically not “renting” your home is still on “loan” until it is fully paid off. That’s something we fail to realize. We do not actually “own” the home, as seen by the number of foreclosures taking place right now. When you buy your house, if you really sit down and think about it, you are basically renting the home from the bank until it’s fully paid off. Of course you have all the luxuries of doing whatever you want to the home unlike renting, but keep in mind it’s not really yours, until it’s paid in full.