Is it Cheaper to Buy than Rent?

Did you know that buying a house in metro Phoenix is as much as 34 percent cheaper than renting a house? Based on current home prices, rents, types of mortgages and interest rates, it can be cheaper to buy a home than to continue renting. Falling interest rates over the past few weeks have made buying more affordable for many people. The current average rate, according to Freddie Mac, for a 30-year mortgage is about 4.12 percent. Nationally, buying is now approximately 38 percent cheaper than renting if you stay in a house for seven years, get a 30-year mortgage, put 20 percent down, itemize deductions at the 25 percent tax bracket and get a 4.3 percent mortgage rate. Sounds like it’s time to start the holiday shopping a little early…time to start shopping for a house.