First Few Years Of Home Ownership

After all the work and energy you put into buying your first home, the real challenge starts in those first few years. In today’s market, it can actually be cheaper to rent than to buy. For example, a Bankrate study found that in all 50 of the largest U.S. metros, average mortgage payments are now about 38% more per month than the average rent. This makes the decision to become a homeowner even harder—and those first few years of homeownership about getting used to it.

But here’s the upside: if you go with a 30‐year fixed mortgage, your payment doesn’t change. For 30 years, no matter what the market does, your mortgage stays the same.

Take Los Angeles for example—landlords can raise rent about 4%–10% a year. That means every raise you get at work is basically going straight to your landlord. And the next one. And the next one. When you own your home, that’s not the case. Your mortgage doesn’t change, so every raise, bonus, or increase in income goes back into your pocket—not theirs.

There’s also the option to refinance later if rates drop, which could save hundreds of dollars a month or even free up cash for other needs. I’m helping a family right now refinance, pull out $15,000 cash, and still lower their payment by $400/month.

In short, while buying a home can cost more than renting at the start, the stability of a fixed mortgage and the long-term financial benefits often make ownership the stronger move once you get past those first few years.