At 4.85%, Should You Keep Renting or Just Buy?
Mortgage rates are at the lowest point that they have been in decades ... is it time to buy?
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 thinking about 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: $2,400
* Rent statistics courtesy of Rentometer.
More recent articles about DC area real estate from UrbanTurf:
- Prices Continue to Drop at The Erie
- Last Night’s Opening at The Jamieson
- Friday’s “If I Had $1 Million” Listing
Copyright 2007-2009, UrbanTurf.
Posted Wednesday, Jul 29, 2009 - 9:36 AM EST
