San Diego realtor Matt Huneycutt discusses the differences between rent and mortgage. And why then benefits of paying more to have a mortgage out way the benefits of paying rent.

But a Mortgage is So Expensive

"But Matt, a mortgage is so much more expensive "than my rent!" It should be! Have you run the numbers on a mortgage and gotten a little freaked out because the mortgage rate was so much higher than what your rent is? We'll, you're not alone; I get this all the time.

When we look at what a mortgage is and what rent is, I'll show you that it's not more expensive than your rent. And in fact, you're going to save money, not only in the short-term but in the long-term as well. When you rent, you're paying a fee to use a property. You've got no ownership, you get no tax write-offs, and the cost only goes up over time, leading you to jump from property to property to try to maintain the same monthly cost.

On the flip side, when you have a mortgage, you're paying back a loan, so you're taking money from your left pocket and putting it in your right. The interest and the property taxes you pay on that property are tax deductible, saving you hundreds of dollars a month. At the end of the year, all combined, you'll find that what you spend on a mortgage is actually not that far off from what you spend on the rent. But here's the kicker: The real win is in the long-term gains.

When you have a mortgage, you own the property and all the appreciation that goes with it, anywhere between 3% and 15% per year. In addition, you get a fixed payment for the life of the loan, you can refinance that home down the road and even lower the monthly payment, you can take a loan out against the property to get some extra cash, and you can remodel it to unlock even more value.

If you're interested in running the numbers on your unique situation, reach out to us today. I'm Matt Huneycutt with the Whissel Realty Group. Thanks for watching.

San Diego Featured Listings

See More Listings

See More Listings