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It depends on where you live. In CA renting is usually cheaper than a mortgage for the same property. Here in New Mexico my mortgage (2.6%) is cheaper than rent
by rqtwteye 2y ago
It depends on where you live. In CA renting is usually cheaper than a mortgage for the same property. Here in New Mexico my mortgage (2.6%) is cheaper than renting the same thing. With higher mortgage rates it’s not that clear but it still looks favorable knowing that mortgage stays stable for the next 15 years vs rents constantly increasing.
- throwaway2037 2y agoTo be clear, no one is getting a 2.6% mortgage these days. Your post isn't a very good comparison. It is better to compare renting today vs taking a new mortgage today.
- rqtwteye 2y agoWhere I live, rents have gone up a lot in the last two years so even with the higher interest rates owning is still competitive with renting.
- throwaway2037 2y ago> rents have gone up a lot in the last two years Where? In most places, rent is capped by the median income. Also, many people here are about middle income, so they are living in way above average homes. Yes, there, rents can really run away because you have higher income people, but middle class housing will barely budge.