Wallet Wednesday: Is buying or renting a home a better option?

KNOXVILLE, Tenn. (WVLT)_ Do you own or rent your home? A study by GoBankingRates said in Tennessee, it's cheaper to own your home.

Everyone's situation is different, but the study took the median monthly rent price for homes and compared it to the median list price of homes with a 20% down payment and 30-year loan.

Holli McCray, CEO of the Holli McCray Group, said in most cases in Knoxville it is cheaper to own a home.

"If you're buying a $100,000 home, you're looking at about a $500 a month payment. That's just principle, but you have to add insurance and taxes to that payment as well and of course there are some different fees for different types of loans, but at the end of the day in most cases if someone wants to become a homeowner and they're renting often times we find out the rent is higher than the mortgage," she said.

Washington D.C., Nevada and Arizona were among the 11 states where renting is more affordable than buying. McCray said it also depends on if it's a buyers or sellers market, and in Knoxville that's constantly changing.

"We're hearing a lot about having a sellers market. However, there are caveats about that. There are parts of Knoxville that are sellers market and there are parts of Knoxville that are not and it all comes down to location and price," she said.

The process to own a home is different for everyone, McCray recommends meeting with a professional to help you get started.