Many people believe that renting is less expensive than owning a house, but that’s not always true! Currently, in 42 states, it is actually cheaper to pay a monthly mortgage than rent. This, according to GOBankingRates.com.The data assumes that owners make a twenty percent down payment, based on the median list price, and take a thirty year fixed-rate home loan. It includes property taxes and insurance.
One reason that it’s cheaper to buy vs rent is that mortgage interest rates are so historically low. If the size of a down payment is proving difficult for you, there are plenty of loan options for low, or even no down payment.
Last year, the median down payment was 7% for buyers of single-family homes and condominiums, according to the National Association of Realtors, which means most people are not putting 20% down on their home.
Homeownership is still one of the most effective means to transmit wealth and accumulate status and today’s low rates are a great way to take advantage of that.
Need help with the math? Check out our rent vs own calculator.
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