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At 4.85%, Should You Keep Renting or Just Buy?

  • March 27th 2009

by Mark Wellborn

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Mortgage rates are at the lowest point that they have been in decades (4.85%). As a result, people who have been renting for a long time and were not even in the market for a home are now considering buying. Below we compare the costs of buying a property in two DC neighborhoods versus continuing to rent. (Note: These calculations do not include property insurance payments that would certainly bump up the monthly costs.)

One-bedroom in Logan Circle

  • Price: $365,000
  • 15% Down Payment: $54,750
  • Loan: $310,250
  • 30 year-fixed rate at 4.85%: $1,637/month
  • Condo Fees: $125/month
  • Property taxes: $169/month

Total monthly costs: $1,927
Average monthly rent in Logan Circle for 1 BR: $1,900


Two-bedroom in Columbia Heights

  • Price: $360,000
  • 15% Down Payment: $54,000
  • Loan: $306,000
  • 30 year-fixed rate at 4.85%: $1,614/month
  • Condo Fees: $230/month
  • Property taxes: Approx. $250/month

Total monthly costs: $2,094
Average monthly rent in Columbia Heights for 2 BR: $2,200

* Rent statistics courtesy of Rentometer.

See other articles related to: renting in dc

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/at_4.85_should_you_keep_renting_or_just_buy/724.

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