ReCasa Financial Blog
Even with the recent increase in mortgage rates
, buying is still cheaper than renting. According to Forbes.com
, “Because mortgage rates are still near long-term lows, and because prices fell so much after the housing bubble burst and remain low relative to rents even after recent price increases, buying is still much cheaper than renting.”
While taking into consideration all of the additional expenses of owning your own home, such as insurance, a down payment, purchase costs, and maintenance on top of the mortgage itself, buying is still cheaper than renting . On average, mortgage rates across the United States remain below 10.5% (which has been the trend since May 1990) there is an advantage of buying and owning over renting.
For 78 of the top 100 largest metro cities, the tipping point where renting becomes cheaper is mortgage interest rates of 10% or higher. In fact, 5 of the 10 top metro cities with the highest mortgage-rate tipping points are areas in which ReCasa Financial Group lends to real estate investors. These cities and their tipping rates include:
- Toledo, OH at 20.8%
- Cleveland, OH at 20%
- Dayton, OH at 19.2%
- Akron, OH at 17.4%
- Kansas City, MO-KS at 16.9%
Even with these low interest rates, there is still a balance between buyers and renters . As a real estate investor , are you seeing more individuals looking to rent or to buy?
The post Buying Remains Cheaper Than Renting first appeared on ReCasa Financial Group.
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