10 cities where buying a home is now cheaper than renting

Sunday, September 22, 2024

With mortgage rates falling, monthly home payments are now less expensive than rent in nearly half of the nation's largest metros, according to a new analysis. Zillow found that it's cheaper to buy than rent in 22 of the 50 largest U.S. metros, with homeowners in some cities saving over $400 a month.

Posted by LampLighter at 02:23 AM | 2 COMMENTS | permalink | Comment on This Entry |

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... n New Orleans, buyers can save nearly $450 a month paying a mortgage rather than renting " the best margin of any major metro.

Chicago was second on the list, where the typical mortgage payment is $1,640 per month, $434 less than rent. Pittsburgh homeowners can also save money by not renting, about $321 a month.

Nationally, the typical rent payment is $2,063 a month " $236 more than the typical monthly mortgage payment of $1,827.

Zillow's report assumed a 20% down payment, a 6.5% interest rate and a 30-year fixed-rate mortgage.

"This analysis shows homeownership may be more within reach than most renters think," said Zillow Home Loans Senior Economist Orphe Divounguy. ...

#1 | Posted by LampLighter at 2024-09-22 02:25 AM | Reply

Yeah, remembering back in the day when I bought my house, it was the down payment that caused me pause.

I saw this...

Harris Promises $25,000 Down Payment Aid for First-Generation Homebuyers
www.boundless.com

... The proposal includes $25,000 in downpayment assistance for 400,000 first-generation homebuyers, defined as those whose parents do not own a home.

To qualify, these families must have a history of paying rent on time for at least two years. Additionally, the plan offers a $10,000 tax credit for first-time homebuyers. ...

Yeah, I was fortunate when I bought my house in that my parents were able to finance the down payment.

Once that was accomplished, my monthly mortgage payment (even at the 11+% mortgage rate I was paying at the time) was $200 less per month than the rent I had been paying.

And yeah, 11+% interest on my mortgage.

#2 | Posted by LampLighter at 2024-09-22 02:33 AM | Reply