October 18th, 2011 2:25 PM by Lehel S.
Home prices are very low in the Covina area. A nice entry level home is around $ 325,000. Assuming a down payment of 3.5% and an interest rate of 4.25% the mortgage payment (principal and interest) would be approximately $ 1,543 with tax and insurance it would be close to $ 2,000. Don't forget the tax benefit.
Rent in the area for an average home is a little over $ 1,800 and there is no tax benefit.
After the tax benefit the monthly mortgage is likely a little less than rental in the area.
I think that with such low home prices and low interest rates, buying far outweighs renting.