Uncategorized November 4, 2014

Still Paying Your Landlord’s Mortgage?

Its simple  . . paying rent is not a good investment. When you write a check every month for rent you're paying someone else's mortgage. Wouldn't it be smarter to pay your own mortgage and gain equity in your own home rather than paying your landlord's mortgage? With mortgage interest rates at or below 4% now is an excellent time to buy. As the economy continues to improve interest rates will begin to inch upward and are expected to approach 5$ next year. One percent means a lot . . . with every 1% increase in interest rates buyers lose about 10% of their buying power. Rents in downtown Bellevue have increased as much as 20% this year. With a fixed rate mortgage your housing expense is locked in over the term of the loan. There's no guarantee of stability when a landlord is in control of your monthly housing expense. There are great condos on the market in downtown Bellevue and Kirkland. Maybe now is the time to stop paying your landlord's mortgage. With historically low interest rates and loan programs with down payments as low as 5%, why wait for that next rent increase.