Who’s mortgage are you paying?
Ask the average renter who’s mortgage they are paying and most will quickly correct you by saying, “Oh no. I don’t have a mortgage. I rent.” Some, when further challenged, might even speculate on whether their landlord has a mortgage or if they own the property free and clear.
Let’s face it. If you are paying rent, you are paying your landlord’s mortgage and if the property is free and clear, your landlord is most likely applying it to another mortgage somewhere else.
So why the big fuss? Rent is rent, right? Of course, but just think about what that rent could do if it applied to your mortgage.
You see, a mortgage is a magic wand that converts your occupancy cost, which you must pay one way or another, from a pile of worthless receipts into a path to wealth.
A mortgage is a forced savings account. A mortgage is a tax savings so that your saved tax goes to building your wealth rather than to the government. A mortgage is a fixed payment that doesn’t change when landlords are raising rents. A mortgage pays down and builds equity that you can transfer to your next home purchase allowing for an increasingly prosperous lifestyle. Ultimately a mortgage gets paid off and goes away, allowing you to live rent free.
If you want to go that extra step, you can even keep your mortgaged house when you buy that next home with a new mortgage. That’s when you become the landlord. That’s when someone else is paying your mortgage. Then you can answer the question – who’s mortgage are you paying? – by saying my renter is paying my mortgage and I love it.