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Buying vs Renting Comparison

Are you tried of renting? Are you considering taking the leap into homeownership?

Use our Buying vs Renting Comparison calculator to find out whether it is more financially beneficial for you to purchase a home or to continue renting.

The answer to whether it’s better to rent or to buy will vary based on your situation and should be considered seriously before any final decisions are made.

Owning a home may seem more expensive than renting because there are more financial obligations that come with most homes, like maintenance and HOA fees. Even so, you would be surprised by how small the difference in payments really are, especially when you consider that rent can cost you more than a monthly mortgage payment.


Still renting an apartment and thinking about a home purchase? This calculator can help you make the final decision.

Rent Info
Monthly Rent
%
Annual Rent Increase
%

Property Information
Home Value
$
Annual Maintenance
$
Annual Appreciation
%
Years Before Sell
years
Selling Cost
%

Loan Information
Amount
$
Interest Rate
%
Length
years
Points
%

Taxes And Insurance Information
Your Tax Rate
%
Annual Taxes
Annual Insurance
Annual Private Mortgage Insurance (PMI)



  Rent Buy
Taxes and Insurance $0.00 $22,500.00
Total PMI $0.00 $5,489.58
Total Maintenance $0.00 $4,500.00
Total Payments $51,996.70 $113,012.83
Average Monthly Payment $866.61 $1,883.55
Monthly Rent Savings $1,016.94
Tax Savings $0.00 $4,550.00
Total Rent Savings $56,466.13
House Appreciation Value $382,884.47
Proceeds Minus Costs $356,082.56
Loan Balance $229,571.83
Equity Appreciation $126,510.73
Home Purchase Benefits $70,044.60

Is it financially better to buy a home or to rent? The answer to this question depends upon how much the home costs, how much you are paying for rent, and how much you will have to pay each year in order to maintain your home.

If you were to pay $800.00 per month, for example, and the average rental payment increase was 4.000%, you would pay $51,996.70 in a 5 year period toward rent. If you purchased a home and borrowed $250,000.00 with a 5.000% interest rate, and you paid $900.00 every year toward its maintenance, you would pay $113,012.83 in a 5 year period toward mortgage payments if your Federal tax rate is 26.000%, you pay $3,000.00 in taxes each year and your annual insurance rate is $1,500.00.

When you consider your tax benefits and the appreciation of your home, however, you will actually SAVE money by purchasing a home. If your home shows an annual appreciation of 5.000% and your selling cost is 7.000%, your house appreciation value will be $382,884.47. As a result, your total home purchase benefit will amount to $70,044.60.

Disclaimers: The information provided by these calculators is for illustrative purposes only. There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. The default figures shown are hypothetical and may not be applicable to your individual situation. The calculated results are also intended for illustrative purposes only and accuracy is not guaranteed. There is not tax or financial advice given. Default and calculated tax data are for illustrative purposes only. Be sure to consult a tax or financial professional regarding your specific situation and before relying on the results.

Any hypothetical monthly mortgage payments reflect hypothetical Principal & Interest amounts rounded to the nearest dollar amount and may not include insurance, taxes, or other possible fees. These figures and rates are for educational purposes only and do not reflect an official mortgage loan offer.

We have many other Mortgage Calculators for you to use.

Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Kennesaw, Georgia office at 678-858-8150. I am here to help you with all your mortgage needs.

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