Stability During Inflation
While 40-year high inflation is creating a mess in many areas of the economy, one thing that is a safe-harbor is homeownership. What I’m specifically referring to is the unchanging payment of a fixed-rate mortgage. Of course, owning property without any mortgage is even better, but most homeowners have a loan. When you finance a home purchase with a fixed rate loan, your principal and interest payment doesn’t change. It does not matter if we have 8% inflation, you still pay the same each month. However, for those who rent, you can bet that the rental rate will increase. In fact, for most renters, the increase in rental rate is the single largest increased cost they face. So when you think about the benefits of homeownership, this is an often overlooked one. If you are ready to jump into homeownership, I’m ready to help.