Buying a Home is 35% Less Expensive than Renting!

Buying a Home is 35% Less Expensive than Renting

by  on May 18, 2015


Buying a Home is 35% Less Expensive than Renting! | Keeping Current Matters
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.
The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

  • Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made homeownership even more affordable compared with renting.”
  • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989. 

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

Popular posts from this blog

How Buyers Can Save $430 in the First Year of Ownership

How Buyers Can Save $430 in the First Year of Ownership March 5, 2019 Buyers financing their home purchase can save hundreds of dollars in their first year of owning just by shopping around for a mortgage, according to new study from NerdWallet, a personal finance website. “That savings would accumulate and compound for every year that they had the loan,” Holden Lewis, a home expert at NerdWallet, told CNBC.Home shoppers who compare interest rates between five different lenders can pocket $430 in savings in their first year alone, according to NerdWallet’s analysis using a 30-year fixed-rate, $260,000 mortgage. However, most borrowers fail to shop around. Indeed, half of home buyers say they only looked at one lender when buying a home, according to the survey of about 2,000 adults. Lewis says borrowers are missing out on potential savings. He suggests borrowers not only call multiple lenders when looking for the best loan but also use online home affordability...
Read more

January 2019 Portland Housing Market Recap

Image
The January 2019 Housing Market Recap update for East and West Portland is now available. Get the breakdown by clicking on the image below. There are many factors that go into determining the fair market value for a home. The fair market value is the price that a ready, willing, and able buyer is willing to pay and a seller is willing to accept, based on historical data. Contact me for a complementary and detailed market analysis specific your house, 503.953.6240 or whitney@whitneyminnich.com.
Read more

Happy July 4th!

Image
Have a wonderful and safe July 4th weekend! We're ready to celebrate with friends, food, and fireworks. A special thank you to those who serve and have served our country so that we can enjoy the freedoms we have. So many are currently away from their families and so many have given the ultimate sacrifice - we are forever grateful.
Read more