I Cannot Afford a Mortgage Payment ~ "But You Are Affording One" - Someone Else's

Real Estate Agent with Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 141871

I Cannot Afford a Mortgage Payment ~ "But You Are Affording One" - Someone Else's


If you are renting, you are paying someone else's mortgage in essence, whether they actually have one or not.  Maybe their rental unit is paid for but now you're paying them back for their mortgage in your rent.


There are as many different reasons for renting as there are reasons for buying a home but avoiding a mortgage payment is not one. 


Maybe you are renting because you do not plan to live in the area very long.  Maybe you are renting because your credit scores are low.  Maybe you are renting because you do not have money for a down payment on a home.  Maybe you are renting because nothing has come on the market that "clicks" for you.  Maybe you are renting because you absolutely have to live in a certain neighborhood and nothing is for sale in that neighborhood.  Maybe you are renting because when you moved here, you had a home in your previous location and it has not sold yet.  Maybe, Maybe, Maybe...


Some of those reasons can be overcome in a fairly quick manner and some will  take a little longer.  One that can be dealt with is that there are still some 100% loan to value mortgages available if you qualify. 


More than likely, the home that you are renting has a mortgage on it.  When the investor purchased it, it had to "cash flow" or he/she probably would not have purchased it.  That means that it had to rent for enough to make the mortgage payment and pay other expenses.  Most investors are getting a little more than that amount so they can do repairs if needed etc and often have some that funds their "clear income" for lack of a better term.  An investor has a time period that he plans to pay for the property WITH YOUR MONTHLY RENT.  You could be paying off your own mortgage instead of his. 


So don't say "I Can't afford a mortgage" if you are renting and paying someone else's mortgage!  Instead, talk to a lender about how much house you can afford... get pre-qualified to buy a home and then if you live in McCurtain County Oklahoma, call me at Integrity Real Estate Services in Idabel, and let's go shopping! 


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Homes For Sale Broken Bow Oklahoma 74728
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Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Sometimes that "Big Debt" number looks so scary...without realizing the benefits of deductions, lack of rent increases etc. it scares renters from being homeowners.

Mar 06, 2018 03:10 AM #32
Donna Quinlan
Keller Williams Realty - Newburyport, MA
Keller Williams Real Estate Agent Career Consultan

Good point! Renters are paying a mortgage....thier landlords!

Mar 06, 2018 03:12 AM #33
Raul Rodriguez
Covenant Partners Realty - San Antonio, TX
Looking out for the client's interest and not my p

Good points in explaining where the money goes...

Mar 06, 2018 03:59 AM #34
1 ~Judi & Don Barrett & Chassy Eastep - Integrity
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Georgie Hunter R(S) 58089  in my opinion if they can swing it, they are definitely better off. Given there are somem exceptions to this of course.   It takes looking at the big financial picture.

Mar 06, 2018 04:07 AM #35
1 ~Judi & Don Barrett & Chassy Eastep - Integrity
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Kimo Jarrett you make some good points.  What I find often is that when I put those that cannot qualify with a good lender, that lender often leads them through a process to correct those issues that disqualify them so they can qualify for a mortgage.  I've shaken the hand at many closings where this has been the case.

Mar 06, 2018 04:09 AM #36
1 ~Judi & Don Barrett & Chassy Eastep - Integrity
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Sally K. & David L. Hanson When tenants realize that they can get locked into a payment (given the taxes and insurance may increase) over the dread that their rent is going to go up 3 to 5 % each year if they keep renting, it is often a wonderful relief.

Mar 06, 2018 04:11 AM #37
1 ~Judi & Don Barrett & Chassy Eastep - Integrity
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Donna Quinlan , yes!

Raul Rodriguez , yes.. into their landlord's bank instead of into their equity.

Mar 06, 2018 04:12 AM #38
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Very true, Judi.  There are reasons to rent for some folks, but the idea of affordability needs to be looked at very carefully.

Mar 06, 2018 04:40 AM #39
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Coming from a lender that has worked many years in Servicing, I can see some agents understand the overall picture. I have seen many agents in the past spend more time convincing people to buy rather than to shut up and use your ears.

Mar 06, 2018 08:01 AM #40
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Great post on the thinking that goes on in renters minds.

I find that in many cases a renter would have a lower monthly cost if they bought. But the sticking point is having enough for down payment and closing costs.

Great post

Mar 06, 2018 08:24 AM #41
Alesha A. Wilson, M.Ed., MRP
525 Realty Group - Edmond, OK
Buy and Sell with Confidence

My husband mentioned the desire to rent the other day.  I don't think he expected the "lecture" that followed  He just wants a lower maintenance home - Guess I am going to have to keep the "honey do" lists down to a minimum.  Great post An Idabel OK Broker ~ Judi K Barrett 

Mar 06, 2018 08:46 AM #42
John Juarez
The Medford Real Estate Team - Fremont, CA

Hi, Judi,

There are good reasons to rent but there are renters who should be buying and not renting. Your post provides excellent information.

I have seen many renters, locally, suffer because landlords have found it possible to sharply increase rents due to the lack of housing in the face of very strong demand.

Mar 06, 2018 09:48 AM #43
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Congratulations on a well deserved feature!

Reminds me of how as a stager I hear "I can't afford staging" and my reply is usually "you can't afford not to stage."

You pay one way or the other...might as well make it work to your advantage!

Mar 06, 2018 02:25 PM #45
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Judi,

Buying a home is a good idea, if you will stay around for a few years. Otherwise, better to rent.

Mar 06, 2018 07:53 PM #46
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Well written, An Idabel OK Broker ~ Judi K Barrett. The biggest problem with most renters becoming 'owners' in my word is either their past credit problems or the lack of a down payment (or both). I always try to  connect them with a lender, but still we both must realize not all can be home buyers...
Thanks for sharing,


Mar 06, 2018 08:38 PM #47
Eva B. Liland with Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service

In hindsight, it is better to buy than to rent but renters faces such big obstacles in today's market, just paying the rent. Bottom line, there is no money left to save for a down payment.

Mar 07, 2018 07:22 AM #48
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

There are many reasons renters are doing so. If they want to own their own home, they should definitely look into it. Many people who think they cannot afford a home, actually could and sometimes they could wind up paying less for a mortgage than they did for rent.

Mar 07, 2018 07:40 AM #49
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

Renting does make sense for some situations. What I often see are renters who want to buy--but they don't have the cash to cover a down payment and the closing costs.  Also they can't afford the type of house they want to buy.

Mar 07, 2018 07:47 AM #50
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Even if you think you don't qualify, call An Idabel OK Broker ~ Judi K Barrett and let her professionally check your eligibility. 

Mar 09, 2018 04:49 AM #51
Steven Beam
RE/MAX Alliance - Parker Colorado Real Estate. - Parker, CO
Parker Colorado Real Estate

So true. I still cannot believe how many people are paying $2,200 to $3,500 per month to rent homes...and they do this for years. But they tell me they cannot afford to buy a home. It's sad and their retirement and financial freedom down the road will suffer. 

Apr 03, 2018 08:12 AM #52
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1 ~Judi & Don Barrett & Chassy Eastep - Integrity

BS Ed, Integrity Real Estate Services -IDABEL OK
Contact Judi Barrett about homes in Idabel Oklahoma!
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