You have to live somewhere. If you don't buy a place then you rent. With a 30 year fixed mortgage you are locking in the monthly expense. Rent tends to increase with inflation. What tends to happen is the before long rent raises far above your old mortgage. I couldn't rent an apartment for what I pay on my mortgage now.
"I've never researched the definition of "mortgage" but I've been told it literally translates into "death grip." Even if that's not what it translates into, it's true."
A mortgage is just a low interest loan. There's nothing sinister about it.
“You have to live somewhere. If you don’t buy a place then you rent. With a 30 year fixed mortgage you are locking in the monthly expense. Rent tends to increase with inflation. What tends to happen is the before long rent raises far above your old mortgage. I couldn’t rent an apartment for what I pay on my mortgage now. “
Excellent point. I pay in PITI less than someone renting a single bedroom home in Denver now.
The juvenile anti-owner crowd always forgets they are paying far more in rent than many people pay to own.
The average home in Denver is probably purchased around $180K, or about $1,400 a month in PITI. The average apartment is now $1,300. The PITI guy also gets about $250 tax savings, so he is paying about $1,150 total. Plus, he lives in a house of 1800 SQ/ft average with a yard, and the renting sucker lives in 740 sq/ft. The owner has property appreciating as much as he is paying monthly. The renter gets the privilege of paying more and more and more every year. The owner is locked in at $1,400.