Many people believe that renting is significantly cheaper than owning a house. This is actually only true for eight states and the District of Columbia—meaning it’s much less expensive to pay a monthly mortgage in 84% of the U.S.!

So why are people so hesitant to purchase a house? According to Forbes Magazine, it’s because of the down payment, which typically consists of 20 percent of the purchase price. It’s important, however, to remember that you may be able to reduce the size of your down payment. Your local lender can help you through this process and explain your payment options.

Even with a 20 percent down payment, purchasing your own home is considerably less expensive—especially in the following ten states, where monthly savings are significantly higher for renters:

1. New York: $1,635 saved each month
2. Massachusetts: $559
3. Illinois: $522
4. New Jersey: $472
5. Pennsylvania: $461
6. Mississippi: $309
7. Indiana: $280
8. Tennessee: $261
9. Louisiana: $228
10. Texas: $154

Although the monthly savings may not be as high in the remaining 32 states, you still continue to save by buying, unless you reside in the following nine locations:

1. Hawaii: $515 saved each month by renting
2. Montana: $248
3. Utah: $242
4. Idaho: $204
5. D.C.: $144
6. Colorado: $137
7. Wyoming: $99
8. Delaware: $75
9. Oregon: $12

If you are looking to switch from paying monthly rental fees to periodic mortgage payments, or would like to learn more about the mortgage process in general, contact a loan officer today!