When deciding between renting or buying a home, think about these three factors:
1. Buying a home means avoiding rising rents.
When you rent: Your monthly payment generally goes up each time you sign or renew a lease.
When you buy: With your fixed-rate mortgage, your monthly payment is locked in for the length of your home loan.
2. Homeowners own a tangible and valuable asset.
When you rent: You won't get any return on your investment as you pay your rent monthly.
When you buy: As home prices rise, and as you pay down your home loan, you build equity.
"...the average U.S. homeowner now has about $290,000 in equity." -CoreLogic
3. Owning your home grows your wealth over time.
When you rent: When the cost of renting goes up, it's more difficult to save money for a down payment to buy a new home.
When you buy: As you build equity through the years, you give your net worth a big boost.
"A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter." -Lawrence Yun, Chief Economist, NAR