To rent, or to buy a Harrisonburg townhouse

In meeting with a potential buyer of a City townhouse yesterday, we found ourselves comparing the opportunities in buying versus renting.

RENT = $900/m.  There are regularly options for renting a two-story townhouse in Harrisonburg for $875-$950 in Avalon Woods, Beacon Hill, Stonewall Heights, Liberty Square, etc.

BUY = $817/m.  With an FHA loan, buying such a townhouse apparently may cost as little as $777 per month assuming a $130K purchase price, 3.25% interest rate, 3.5% down payment. 



This shows an $83/month cost savings of buying instead of renting.  If we then look at the difference between renting and buying over a five year time period, the advantages start to pile up. 



You'll also want to keep closing costs in mind (for buying) but as you can see, there are some compelling reasons to consider buying a townhouse if you are in the market to rent one but know that you'll be in the area for the next five years.

The mortgage details were generated using Wells Fargo's online mortgage estimate tool and this is the scenario I was considering.