To rent, or to buy, that is the question. And only you can answer that for yourself. However, our free rent vs. buy calculator can help you make a more informed decision.
We’ll calculate how your costs associated with renting each month compares to the estimated cost of buying a home. You punch in the numbers and we’ll do the math.
Should you buy or should you rent? Only you can answer that question, but our Rent vs Buy Calculator will help you make this important financial decision. We’ll take the important costs associated with renting each month and compare with the complexity of buying a home, so you know which decision is best based on your situation.
Here is your estimated costs of renting vs buying based on the numbers you provided. Want to see more options? Just enter new numbers to calculate and compare.
These calculations are tools for learning more about the mortgage process and are for educational/estimation purposes only. Payment shown does not include taxes, insurance, or mortgage insurance (if applicable). This does not constitute an offer or approval of credit. Contact a PrimeLending home loan officer for actual estimates.
For example, a Conventional fixed rate loan with the terms purchase price of $312,500, on a loan term of 360 months, down payment of 20%, and an interest rate of 6.5%, will result in an annual percentage rate of 6.598% with $3,613 in APR fees. Rate pulled 09/02/22, rates change daily. Loans are subject to borrower qualifications, including income, property evaluation, and final credit approval.
Choosing to leave renting behind and buy a home is a big life step. If you find yourself wondering, ‘should I rent or own a home?’ you have come to the right place. Comparing the cost of renting vs. buying a home is the first step to knowing what’s right for you.
If your apartment is starting to feel small or you wish you could customize the home you are renting, you may be ready to buy a home. By trading in renting for buying, you have the opportunity to make your home truly your own whether it’s painting your house pink, putting in fresh carpeting, or creating your dream kitchen.
Other pros of buying your home over renting is that you can build equity. What is home equity? It’s the difference between the current market value of your home and what you have left of your mortgage. For instance, if your home is worth $350,000 and you still owe $250,000 on your mortgage, the equity of your home is $100,000. With renting, your money goes straight to your landlord or management company leaving you without the opportunity to invest in the property you reside in. When you trade renting for buying you can build home equity by making a larger down payment, paying your mortgage off early, or making biweekly payments, among other equity building methods.
Wondering if renting is cheaper than buying? You’re not alone. Many people do a cost comparison of renting vs. buying before they start their home search. To get a month-by-month comparison, add up your monthly cost of living while renting and your projected monthly cost of living once you buy a home. Here’s a side-by-side breakdown of a few of the possible monthly costs associated with renting and buying:
Both renting and buying can pose additional costs that the other option doesn’t have. For instance, some apartments have amenity fees and garage space rental fees while owning your home means you don’t have to pay extra for your parking space or resident lounge. On the other hand, when you buy a home, you are in charge of the maintenance costs while renters have maintenance crews to fix any issues. Knowing if renting is cheaper than buying a home, or vice versa, really comes down to your budget and the housing market in your area.