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OWN VS. RENT

Buying Can Be More Affordable Than Renting

It’s still a great time to buy a home. Even with interest rates around 6%, buying a home can be more affordable than renting. As a bonus, when home values rise, you build equity in your home.

Own vs. Rent Example

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Own

 

$295,680

Total Paid Over 10 Years

Gain a savings of $69,784 when you own versus rent.

Plus, when home values rise, you build equity in your home.

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Rent

$365,464

Total Paid Over 10 Years

The national average rent for a single-family house is currently $2,018 per month. With a projected increase of 8.86% per year, after 10 years, your rent would increase to $4,332 per month. This means that after 10 years, your total rent paid would be  $365,464.

 

For example, for a loan amount of $411,000, 30-year fixed rate loan at 6% (6.075% APR) with Loan-to-Value of 97%, your monthly payment will be $2,464*. In 10 years, your payment will remain $2,464 per month, and the total paid on your home loan would be $295,680. That is a savings of $69,784. 

Benefits of Owning Your Home vs. Renting:

  • Pay your own mortgage instead of your landlord’s

  • Count on a consistent monthly home loan payment

  • Avoid throwing away money on rent

  • Eliminate a bidding war for a rental home

  • Avoid termination of your lease 

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Connect with a Loan Originator Today!

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