When comparing a rent payment with a mortgage payment, two trends become clear concerning payment increase, and the equity being built. A rent payment may experience an increase year over year. In fact, according to Zillow, the cost of rent increased nationwide by $57 last year. Mortgage payments on the other hand, do not change over the life of the loan. At the same time, also according to Zillow, home values increased 5.4% last year and are expected to grow by an additional 1.9% this year, meaning that with each mortgage payment, you are building equity. This is not the case with a rent payment. The combination of your payment each month and the value of the home increasing means that homeowners have a great opportunity to build wealth. This equity can be used in many ways including home renovations, a down payment on a new home, or simply to stash and save. There are many other factors that weigh into this decision, but strictly based on these two trends, owning a home makes a lot more long term financial sense than continuing to rent.

Rent Vs Own Comparison