Question: When you rent your home, how much do you pay in interest?

Answer: 100%

Think about it! Your total rent payment goes to your landlord. You, the renter, create “0” equity in the property. If you are paying monthly rent of $800 a month over a 5-year period, you will have paid $48,000 to your landlord with nothing to show for it.

As a home-owner, with the same monthly payment over the same 5-year period, you would have built equity in the your property. You would have recognized income tax benefits, as well as setting yourself up better by retirement, this would allow you to work toward having your house paid for by the time you retire.

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