Green Bay Mortgage News

Renting versus Owning - Green Bay, WI

Home prices have taken such a beating and the demand for rental units has increased so much that it's now cheaper to buy a two-bedroom home than to rent in most cases.

According to the real estate web site www.trulia.com , buying was cheaper than renting in 74% of the country's 50 largest cities in July.  In just 12% of the cities, renting was cheaper.  In the remaining 14% of cities, renting was less expensive but close to the cost of buying.  Why would you want to build your landlords equity?  Possibility of a bigger tax deduction and homeownership is the American dream.

In addition to a continuing decline in home prices, rock-bottom interest rates have added a lot of weight to the buy side of the equation.  The overnight average rate for a 30-year fixed was 4.19% on Monday, according to www.bankrate.com.  A 15 year fixed averaged just 3.43%.

With the perks of cheap home prices and record low rates, for those who can qualify based on; credit worthiness, debt to income ratio, and a down payment, it is certainly a buyers market.