Flock to Florida
The Sunshine State has more than just great weather and sandy beaches. According to a new analysis, it also has four cities where mortgage payments clock in significantly lower than local rents.Verify your new rate (May 30th, 2020)
More affordable mortgage
Thinking of buying a home? Florida should probably be on your radar. According to a new analysis by LendingTree, in four major Florida cities, it’s significantly more affordable to own a place than to rent one.
In Miami, for example, media rents clock in at $1,477. A median mortgage payment? That’s just $1,215 — equating to more than $3,100 savings across the year.
Orlando, Tampa and Jacksonville also have big discrepancies between rent and mortgages. In Orlando, the monthly rent is $1,261. Homeowners, on the other hand, pay just $1,036 per month — a difference of $227 a month or $2,724 annually.
Other major U.S. cities where mortgages come in more affordable than rents include Virginia Beach, Virginia; Denver; Las Vegas; Washington, D.C.; Riverside, California; and Charlotte, North Carolina.
The analysis also looked at affordability as it pertains to home size. According to the data, two- and three-bedroom properties are almost always more affordable to buy than to rent.
Two-bedrooms are cheaper to buy in all but nine of the nation’s top 50 metros while buying a three-bedroom home is more affordable across all large markets.
“For average-sized houses, buying is usually a better deal,” said Tendayi Kapfidze, LendingTree’s chief economist.
Homes on the super-small size (studios and one-bedrooms), as well as those on the larger side (five bedrooms or more), are often more affordable to rent than buy.Verify your new rate (May 30th, 2020)
Get today’s mortgage rates
Considering buying a home? Then shop around and see what mortgage rates you qualify for today.Verify your new rate (May 30th, 2020)