BUYING A HOME IS LESS EXPENSIVE THAN RENTING

For all of your potential renters out there – if you are going to stay in your home for 4 or more years it is less expensive to own vs. renting! Truila released their Rent vs. Buy report and reported that homeownership remains cheaper than renting by an average of 38%. Mortgage rates remain at a low 4.5% for a 30-year fixed conventional loan. According to Truila – 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.

Think about it – each mortgage payment that you may helps to pay down a portion of the principal. Even if you sell your home in a few years for the same price that you pay for it today – you will have built equity in your home which translates to money in your pocket. For example, The renter starts out paying $800 a month with annual increases of approximately 5%. The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1000. After 6 years, the homeowners payment is lower than the renters monthly payment. With the tax savings of homeownership the homeowners payment is less than the rental payment after 3 years.

So let us help you find your new home at Christy Walker & Associates!