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Rent Vs. Buy

The math can be critical when trying to make decisions about homebuying vs renting. The recent rise in mortgage rates (from record lows) has indeed made buying a house a little more expensive. According to Forbes the increase from 3.4% to 3.9% on a 30-year mortgage raised the monthly payment on a $200,000 mortgage by $56 or 6%. But because home prices had fallen so much from their pre-bubble peaks, it is still probably cheaper to buy vs. rent. As a matter-of-fact, Forbes resports that in most cases mortgage rates would have to inclrease to 10.5% in most places for renting to be cheaper than buying a home. Now, there are a multitude of other factors involved in making the decision to buy a house, and each potential homeowner’s situation and needs are different, but if you are able to buy or are considering it, this is another great reason to start looking now! Visit Forbes for the full breakdown on rent vs. buy.

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