Given continued relatively low interest rates and some increase in home values, let's take a new look at the opportunities of buying versus renting.

RENT = $1050/m.  There are regularly options for renting a two-story townhouse in Harrisonburg for approximately $1050 / month in Avalon Woods, Beacon Hill, Stonewall Heights, Liberty Square, etc.

BUY = $1104/m.  With a 95% loan, buying such a townhouse apparently may cost as little/muchas $1,272 per month assuming a $160K purchase price and a 4.7% interest rate per SunTrust Mortgage's payment calculator.

So -- at first glace, it would seem to be about $54/month more expensive to buy a townhouse as compared to renting one right now.

That said, if we then look at the difference between renting and buying over a five year time period, we start to see a bigger picture...

Principal Reduction of Mortgage over 5 Years = $13,025

As you can see, this builds a somewhat compelling case for buying instead of renting if you are going to be living in this potential townhouse for the next five years.  A few other factors to keep in mind....

• Your cost savings will potentially be even greater than outlined above based on your tax savings you will see each year because of having paid mortgage interest.
  
  
• The analysis above does not factor in your closing costs when buying.
   
• Your "buying" costs could end up being higher than outlined above because of any property owners association fees as well as any home maintenance you would need to pay for during that time of owning the townhouse.
  

If you are renting a townhouse now, but suspect you will be living in Harrisonburg for the next five years, let's chat about what could make the most sense for your housing situation.