Why Buying is Cheaper Than Renting

In a report released by Trulia earlier this year, it was found that it is still cheaper to pay a mortgage versus paying rent. Over 100 of the largest metropolitan areas were surveyed, and renting was nearly 40% more expensive than purchasing and making payments on a home.

Even with home prices on the rise, low mortgage rates have made payments manageable, and in most cases less than a monthly mortgage payment for the same space. In fact, mortgage rates would need to rise by over 10% in order for renting to be cheaper than buying, and rates haven’t been that high in over 18 years.

It is also important to keep in mind that purchasing a home is an investment, rather than simply a monthly housing cost. Although home price fluctuations have widely varied in the past decade or so, forecasts look good for the housing market overall in the coming years.

Why Buying is the way to go?
Why Buying is the way to go?
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