By Andy Warren | East Valley Tribune
If you’ve been considering making the jump from renter to homeowner, here’s some news that could help make up your mind. According to online real estate company Trulia, buying remains cheaper than renting in most communities across the country as long as mortgage rates stay below 10.5 percent. Even with the recent increase in the 30-year fixed rate to 3.9 percent, it’s still 41 percent cheaper to buy a new home than rent one, nationally.
If you’re in the market for a home in greater Phoenix or Tucson, the numbers in favor of owning are even more impressive. Trulia’s Rent vs. Buy analysis indicates it’s 46 percent cheaper to buy than rent in Phoenix, and 48 percent cheaper in Tucson.
Of course, there are always conditions that go along with such a bold statement. Trulia’s research assumes three main conditions: that you will stay in the home seven years; that you itemize federal tax deductions in the 25 percent bracket; and that your 30-year, fixed-rate mortgage rate is 3.9 percent, with a 20 percent down payment.
