The latest Rent vs. Buy Report from Trulia explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
The updated numbers show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!
A study by GoBankingRates looked at the cost of renting vs. owning a home at the state level and concluded that in 39 states, it is actually ‘a little’ or ‘a lot’ cheaper to own (represented by the two shades of blue in the map below). Guess how New Jersey fared?
New Jersey falls into the “a lot cheaper to own” category! That’s great news for first time homebuyers.
One of the main reasons owning a home remains significantly cheaper than renting is the fact that interest rates have remained at or near historic lows. Freddie Mac reports that the current interest rate on a 30-year fixed rate mortgage is 3.91%.
Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.
Buying a home makes sense socially and financially. Are you a renter who would like to evaluate your ability to buy this year? Let’s get together and find you your dream home! Call Lynn Garafola of Team Nest Builder at (973) 222-3777 today! Want to start searching now? Click HERE to view available homes in Sussex and Morris counties and the surrounding areas. And for loads of helpful home-buying information, be sure to get your FREE Home Buyer's Guide here!
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