Do you wonder what the difference would be owning a home vs. renting a home in the Albuquerque or Rio Rancho NM area?
Think about this. When you rent a home for $1,000 per month and leave the home in 5 years you paid $60,000 to a landlord. You did not receive any tax break for the interest deduction. You get nothing back but maybe your deposit.
On the other hand if you bought a home for $200,000 and had a 4% appreciation rate over that 5 years you would gain roughly $40,000 in equity, not to mention you paid down your mortgage say $20,000 and took the interest deduction which saved you money on your income taxes. Now you have a home worth $240,000 and owe $180,000. Look at what you have accomplished! You have built net worth rather than having paid…
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