If you can qualify for the loan... This is a no brainer
Don’t let the idea of a 30-year mortgage scare you. The average mortgage length of a home loan, according to Rocket Mortgage, is less than 10 years.
How can that be?
A buyer is purchasing a median priced home for $428,700 with 20 percent down and obtaining a 30-year fixed rate loan of $343,960 (80 percent of purchase price) at 5.88% interest.
The buyer currently lives in a median-priced 2-bedroom, 2-bath apartment in Atlanta that rents for $2,431 monthly. (Search ApartmentList.com to see the cost-of-living numbers and median rents for your location.)
The “screen capture” below displays the results from NerdWallet’s rent vs. buy calculator. The first scenario shows the point where it becomes cheaper for the buyer to purchase as opposed to renting. That takes place at approximately three years, as you can see in the chart below.
This second “screen capture” is a summary of the amounts saved at various points in this loan. It’s easy to see why the data from the Federal Reserve shows that homeowners have 40 times the net worth of renters.