Why do people buy homes instead of renting, when so much of the mortgage payment goes towards interest?

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A question by :  and interest is mostly for the bank’s profit? why would anyone want to pay that??


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Depending on who you ask, yes. Some individuals think renting is preferable to purchasing. You don’t pay maintenance fees if you rent. Another person handles that. You are in charge of upkeep once you purchase a house.

I believe that purchasing has advantages over renting. Instead, then just making monthly payments, I invest in my home to increase its value. I am not constrained by a rental agreement, so I can make changes as I choose. You don’t have to make any further payments on a house once it is paid off. At that stage, maintenance, insurance, and property taxes are the key expenses.

As an investment, the house will be worth more than you paid for it if you maintain it for another 20 years. not to live in an apartment with persons who are close to the walls. Homes are preferable to live in than apartments because they offer a more private lifestyle. To ensure that your house payment is manageable, try to pay it off as quickly as you can and save up money for a larger down payment. If a single person or married couple owns a home, they will have space for a future family as well as an investment in case they decide to purchase a larger property. Contrary to buying a home, renting requires monthly payments for life.


“Because the interest you pay on your mortgage is tax deductible.

For example, my mortgage is $1,200.00 a month. But $650.00 of that is interest on the loan.
I have an immediate $7,800.00 deduction on my taxes because of that interest…kind of makes it like I am not paying it.

In addition, I ALSO deduct another $250.00 every month – that is $3,000.00 a year. In property taxes and insurance.

My house was worth $169,000.00 when I bought it. It is worth $269,000.00 today.

I imagine that when I sell it in 15 years. It will be worth at least $350,000.00 if not more.

Even if it is only worth $169,000.00 when I sell it in 15 years…I will get that $169,000.00 so it will be like I lived totally RENT FREE for 20 years.

In the meantime, I’ve made a perfect game room with black walls, and a 72″ screen TV with a wet bar and perfect ‘theater’ seating. Each row slightly higher than the front.. 4 chairs per row 3 rows.

I also customized my master bath and have one of those rain showers and I painted my living room purple and I’ve built a deck and an outdoor kitchen for entertaining…and I out up a six foots fence so I can install a hot tub next spring.

You cannot do that in a rental.

And I have a dog. A big furry, shedding dog.”


“My house payment is 1300 a month. To rent the same sort of property would be more like 2000 a month- so it is much cheaper to buy in my area (and seems cheaper each year in comparison to how the rent would keep going up). half of the 1300 is property taxes and insurance. Of the remaining 650 (at this point a few years down the line) about 375 is interest and the rest goes to principal on a 30 years loan.

I bought it for 165000 in 2009. It recently appraised at 240000. So, if I sold it, I would have gained about 75000 plus the 33000 I put down plus the small amount I have paid back in principle. If I had rented, I would not get anything back- none of my rent payments and none of the gained value. Perhaps the landlord might return some of my deposit.”


“Let’s say you had $100,000 deposited with the bank earning 5%. Each month you would make just over $400 in interest. If you run a mortgage amortization on a mortgage for $100,000 at 5%, you will find in the first month you pay the exact same amount to the bank.

Now, explain to me why I suspect you think the first one is not a problem but the second one is a total rip-off? You have the bank’s money, the interest you pay is purely a function of how much you still owe. Want to save interest? Pay off more each month.”


Because the house value rises over time. Even with the interest payments there is usually a gain in monetary values once the loan is paid off. With renting its money down the drain and insecure too. Everything depends on mortgage payments versus rent payments. If the monthly mortgage payment were $1,000 and the monthly rent on a similar house were $1,000, you would be better off buying.”


“My husband and I want a house because we’re sick of being woken up by our neighbors having sex all the time.

Also, where we live, a mortgage would in fact be cheaper than a house and we could paint it whatever colors we wanted and have central heat and air rather than the shitty baseboard nonsense that seems to be in all the apartments available in this town. The amount you pay in rent goes nowhere to your benefit. You also have no say in doing things to the property and you can be told to move at the end of your lease, or have rent increases.
IF you buy, the amount will stay firm for 30 years, at which time you will no longer have a payment. Also, them home may have appreciated $100000 and that will be yours, not your landlords. Lots of benefits to owning

We’re saving for a down payment. We can’t wait.”


  • “Because when you rent, you’re also paying interest. The builder/developer got a loan to pay for building the apartment or buying it and some of your rent goes to pay the interest the builder/owner is paying. If you’re renting you don’t have to pay for repairs or maintenance of the building.

Because they actually build equity and can recoup money when they sell. Your rent buys you basically nothing at all, except a place to live, which the person buying gets too.

Interest is 100% bank profit. It’s how they make money.

  • Because tons of people don’t have good enough credit to get a mortgage, don’t make enough money to qualify for a mortgage or just don’t want the responsibility.”


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