|This is probably the biggest one. And for good reason. The fastest and best way to financial security is to build up equity in your home. When you’re a renter, you start from scratch every month again. You got no further ahead last month by paying your rent.
Now, if the title was in your name and you paid down a little of the outstanding balance last month when you made that payment, even if it was only a minuscule portion, you are slightly ahead. But the effect spirals, and pretty soon you’re paying a substantial amount of the balance each month, building your equity and thus, your financial well-being. Add to that the appreciation that may be occurring and you are soon in a much stronger net worth situation, even if not in a better cash-flow one. Paying your own mortgage gets you ahead financially.
But, you also need to be aware of two cautions. First, your payment will not likely go down. Hard as it may be to accept, landlords make almost nothing in rent; they may hardly be covering their costs, so you will still be paying just as much each month when you pay your own mortgage and associated costs (taxes, insurance, etc.) Second, when you enter a rent 2 own program, you’re still paying rent during the term of the program. There is no equity gain until you exit the program and get title to the property. However, there is the “light at the end of the tunnel” that is not there when you are simply renting.