Today’s reasonable prices can make a good case for buying rather than renting, say advisors quoted in USA Today. While many first-timers are leery of making a long-term contract, here is a way you could determine if the move is a wise one.

* Divide the price of a home you are considering by the annual rent for a comparable place. If the number falls below 15, buying starts to look like a good idea.

What does the number “15” signify?  It refers to the years in a 15 year conventional mortgage. 15 year mortgages typically have a bit higher rate of repayment and a lower interest rate so this would be an indicator of a good use of your money…….the mortgage with its attendant tax advantages or the rent and putting other money into a savings plan.