Mortgage Myth: Renting Is Always Cheaper Than Buying
While it may seem like renting is cheaper than buying, owning a home could mean more money in the bank down the line. Generally, it takes 5 to 7 years of homeownership to offset the cost of renting, so if you are planning on staying in your home for a long period, you may save money over time.
Video transcript
Mortgage myth: Renting is always cheaper than buying a home.
Generally, it takes 5 to 7 years of homeownership to offset the cost of renting. If you anticipate moving frequently, renting may still be the best option for you. If you plan on staying in your home for a longer period, you may save money over time. With homeownership, you also don't have to worry about surprise rent increases. Your monthly payment with a fixed-rate mortgage doesn't change compared to inflation. Assuming your home appreciates in value, this could potentially mean money in the bank when it's time to sell years down the road. Contact New American Funding today.
