Buying A Home Is Now 38% Cheaper Than Renting
Rent-versus-buy declarations like this one from Trulia’s chief economist often paint a misleading picture for people trying to decide whether it’s time to purchase a home. The actual mortgage rate a borrower will pay depends on many factors that averaged mortgage rates don’t capture. In addition, rent prices, property taxes and home insurance rates vary greatly from place to place. If you’re buying property in a flood zone, you’ll have to add the additional cost of flood insurance to your calculation. It’s important that any prospective homeowner do their own individual rent-versus-buy determination based on their credit profile and local housing market.