Buying a Home vs. Renting
Buying a Home is 36% Cheaper than Renting!
In Trulia’s most recent Rent vs. Buy Report, it states home ownership using a traditional 30-year fixed rate mortgage remains cheaper than renting in the 100 largest metro areas in the U.S.
The data shows a range from 5% less expensive in Orange County, California up to 46% in Houston, Texas. The nationwide average is 36%.
GoBankingRates looked at the cost of renting vs. owing a home state by state. The blue shades show where it is actually ‘a little’ or ‘a lot’ cheaper to own a home.
One of the primary reasons that owning a home has remained significantly cheaper than renting is due to near low historic mortgage interest rates. Freddie Mac reported rates fell last week to 3.43%.
Why pay your landlord’s mortgage by renting when you could be paying your own mortgage and building equity toward a more solid financial future.
Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying a home! Rates haven’t been this high since 1989.
Real Estate Bottom Line
Buying a home makes financial sense. If you are currently renting and would like to learn if you could qualify to buy a home, reach out to me and let’s see what makes sense for you.