A monthly mortgage payment is less expensive than rent in 22 of the nation’s 50 largest metros, according to new data from Zillow (NASDAQ: Z, ZG).
The new data determined the typical rent payment nationally is $2,063 a month while the typical mortgage payment is $1,827. New Orleans, Chicago and Pittsburgh offered the greatest savings when comparing the cost of rent to a mortgage payment (prior to including taxes and insurance) while assuming a buyer can put 20% down.
Zillow attributed the latest statistics to declining mortgage rates.
“This analysis shows homeownership may be more within reach than most renters think,” said Zillow Home Loans Senior Economist Orphe Divounguy. “Coming up with the down payment is still a huge barrier, but for those who can make it work, homeownership may come with lower monthly costs and the ability to build long-term wealth in the form of home equity – something you lose out on as a renter. With mortgage rates dropping, it’s a great time to
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With taxes and insurance at a modest level and a loan amount of $350000 the payment would be at least $2350 a month or $300 higher than rent. That also assumes a 20% down payment of almost $90,000 plus $7-$10,000 in closing costs. An unlikely scenario in the mid 400k price range.
Great points!
By not including mandatory taxes, mandatory insurance and in some cases even mandatory HOA they are totally misleading.
I don’t trust anything from Zillow.
I don’t trust Zillow either.
This article is a perfect example of how they are usually misleading.