BROKEN ARROW, Okla. — Spring time is prime home-buying season.
But this year, many people are taking a step back to weigh whether it makes more sense to buy or rent in the short term.
Figuring it out can be tricky. You need to factor in more than just your monthly rent or mortgage payment. A home can be your most significant investment, with equity accumulating over time. You need to account for maintenance, repairs, insurance, and taxes, in addition to the mortgage.
WATCH: Buy or rent?
Alex Gailey with Bankrate said, "The math has really changed with the rent versus buy question over the last few years, and that's really a product of the skyrocketing home prices, of mortgage rates now being north of 6.5%,"
Gailey said the average monthly mortgage payment is $2,800, while the average rent is $2,000.
So, how do you know which is best for you?
Gailey advises first looking at your income: "Your goal should be to keep your housing costs 30% or less of your income."
If buying puts you above that, it makes sense to rent while setting aside money for a bigger down payment. However, you don't have to save up 20% of a home's value to put down when buying it.
Gailey recommends researching first-time buyer programs that allow you to own with as little as a 3% down payment. Your real estate agent can direct you to options in the area where you hope to buy.
At the same time, Gailey cautions that you don't need to rush into buying until you feel comfortable that you can afford it and all the other associated costs.
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