Like most, your mom is the one who shows you the ropes of life from childhood to adult hood. But did your mom ever talk to you about how owning a home is cheaper than paying for rent?
If not, read on!
Many believe renting is less expensive than owning a house, between mini maintenance projects and snow/lawn care; it seems to just be easier and cheaper to leave those things up to your landlord. However, the combination of skyrocketing rent and mortgage rates falling have made it actually cheaper to own a house than rent, in 42 states, according to recent data by Gobankingrate.com.
Here are the 10 states with the biggest monthly savings from owning rather than renting:
- New York: $1,635 cheaper to own than rent.
- Massachusetts: $559.
- Illinois: $522.
- New Jersey: $472.
- Pennsylvania: $461.
- Florida: $398.
- Maine: $396.
- Ohio: $375.
- Alaska: $334.
- Rhode Island: $334.
A stumbling block for purchasing is the down payment. Many of us just don’t have 20% to put down on a house. But, did you know 20% down is not a requirement?
The 20% down misconception still holds many would-be buyers back from purchasing. Fortunately, there are a plethora of down-payment assistant programs available, and first-time homebuyers can put as little as 3% down if up-front cash is an issue. Just note, putting less down would make your mortgage payment higher. Obviously, terms and conditions apply and speaking with your loan officer or banking institution is the best way to find the most accurate option for your situation.
Click here for complete state-by-state breakdown.