Rent vs Buy : You are building equity. A 30 year mortgage means at the end of 30 years you have paid off the loan. The house is all yours. If you had a fixed rate mortgage, then that was 30 years without a rent increase. If you were renting, then you paid off your landlords mortgage, and your rents went up year after year. Value Appreciation : In the short term, we have seen prices drop. In the Maryland area, the price drops have been relatively mild. Prices have dropped the equivalent of going back four or five years. (2 comments)