Buying Vs Rent

There are many advantages to buying a home versus renting one. View these advantages in the Buy vs. Rent Comparison Chart, or view a financial comparison of buying versus renting in the Buy vs. Rent Calculator.

Your income, savings, and monthly expenses play an important role in determining how large a mortgage you can afford. To figure out the amount you can afford, please click Affordability.

The renter starts out paying $800 per month with annual increases of 5%
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner's payment is lower than the renter's monthly payment
With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years

Years

Rent Payment

Mortgage Payment

Monthly Difference

After Tax Savings

Yearly Difference

After Tax Savings

1 800 1000 -200 -50 -2400 -600

2 840 1000 -160 -10 -1920 -120

3 882 1000 -118 +32 -1416 +384

4 926 1000 -74 +76 -888 +912

5 972 1000 -28 +122 -336 +1464

6 1021 1000 +21 +171 +252 +2052

7 1072 1000 +72 +222 +864 +2664

8-30 Savings increase every year

Monthly expenses: Buying

Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:

Property Taxes and Special Assessments
Home/Hazard Insurance
Utilities
Maintenance
Home Owner Association (HOA) Fee: Doesn't apply to all purchases. It pays for trash and snow removal and maintenance of common grounds if applicable.
Membership Fee: It may pay for recreational facilities and other services (cable TV).

Additional Information on Buy vs. Rent
Buy vs. Rent Comparison Chart
Buy vs. Rent Calculator

An Equal Opportunity Company. Equal Housing Opportunity.All rights reserved.

An Equal Opportunity Company. Equal Housing Opportunity.
All rights reserved.