For those who are moving to a new area, an age-old question of whether to rent a…

For those who are moving to a new area, an age-old question of whether to rent a house/apartment or buy one always comes up. As a general rule, renting is seen as the more affordable option in the short term but without the investment and long-term value that buying a house gives you. Some recent analysis, however, has shown that this may not actually be the case. Paying a Mortgage is Cheaper than Renting in 42 States According to a chart put out by GoBankingRates.com, the payment on a monthly mortgage for a home is actually cheaper than renting the same home in 42 out of 50 states, including our own state of California. In California, paying a mortgage on a home is actually $179 per month less expensive than renting, on average, and in some states such as New York, that difference can be as high as $1,635 per month. The reason that buying a home is now more affordable than renting is thanks largely in part to historically low mortgage interest rates. Currently, mortgage rates on a 30-year fixed mortgage are 3.91%, and they are expected to hover around 4% for the duration of 2017, at least. These low interest rates have given us a real estate market where buying a home is not only a better long-term investment than renting, it’s actually the more affordable short-term option as well. It’s a Matter of Commitment If buying a house is more affordable month-to-month than renting one, why would anyone still rent? After all, with buying a house you are not only paying less, you’re receiving value for your investment as well. The answer to why renting is still a popular option even in places where buying is drastically more affordable is that renting requires much less commitment. Signing a 30-year mortgage can make even the most settled, committed person a little nervous. If you aren’t sure that you are going to be living in a place for the foreseeable future, renting may still be the more desirable option. Renting gives you flexibility that buying a home does not. With that said, if you aren’t concerned by the commitment then buying a home is certainly the better option. Making the Decision No matter what first glance says, it’s always a good idea to thoroughly explore the options you have available. For example, just because it’s on average cheaper to buy in a state than it is to rent doesn’t mean you won’t be able to find a great deal on a rental, and vise versa. With that said, now is certainly as good a time as ever to purchase a home. Purchasing a home allows you put your money toward something that you will actually own. If you ever decide to move away from a house you’ve bought you’ll be able to sell it and recoup your investment. On the other hand, the money you put towards renting a house or apartment is money you will never see again. In the end, the decision to buy or rent a house comes down to the individual homeowner. The fact that buying a house is often cheaper than renting one, though, does indeed make purchasing a home a much more tempting option. www.blueskyforyou…

Source by jeanie0104