Thursday, September 1, 2022 / by Ana Baldner
Is Buying Cheaper Than Renting?
Is buying cheaper than renting? This depends mostly on the local market and its conditions. The Real Estate market has been heating up the past couple years and many Americans are making the transition from tenant to homeowner.
With rents skyrocketing all over the country, some may make the assumption that even in a heated market, buying may be the better option. But the truth is, there are different associated costs that create key Pro's and Con's to either choice.
Costs of buying
The biggest upfront cost of buying is your down payment. Typically between 3-20% of the home's purchase price. If you do put less down, your interest rate will typically increase, making your monthly payments increase as well. There are many monthly costs you will face, your mortgage payment being the biggest, including principal and interest for your loan. This number could also go up or down if you have a variable interest rate. HOA dues should also be factored in, generally covering lan2 ...
With rents skyrocketing all over the country, some may make the assumption that even in a heated market, buying may be the better option. But the truth is, there are different associated costs that create key Pro's and Con's to either choice.
Costs of buying
The biggest upfront cost of buying is your down payment. Typically between 3-20% of the home's purchase price. If you do put less down, your interest rate will typically increase, making your monthly payments increase as well. There are many monthly costs you will face, your mortgage payment being the biggest, including principal and interest for your loan. This number could also go up or down if you have a variable interest rate. HOA dues should also be factored in, generally covering lan2 ...
