Rent or Purchase
Am I Better Off Renting or Purchasing?
Believe it or not, sometimes you may be better off renting than owning your own home. This calculator will give you a general idea.
Place your cursor in the fields and fill in the requested information to the best of your knowledge. Use the tab key on your keyboard to move through the form. Once the required fields are completed, the form will automatically populate with the information you have requested.
What is your monthly rent?
Estimate your tax bracket.
What is the purchase price of the home you are interested in?
What percentage of the purchase price do you want to put down on the new home purchase?
What is the interest rate of the new home loan?
What is the term of the mortgage? (number of years financed).
This is what your calculated monthly payment would be.
What are the yearly property taxes on the new home?
What does the homeowners insurance cost per year?
This is your total monthly payment with taxes and insurance.
How many years do you plan to stay in the house? (Average is 7 yrs.)
Based on the number of years you plan on staying in the house, and additional information you provided above, the following determinations were made. This is very general. Please consult a financial advisor for a more specific determination.
You will pay out this total in rent payments over the number of years you indicated above.
You will pay out this total in mortgage payments (less tax savings) over the number of years you indicated above.
Note: This calculator is provided to give you a general idea. We cannot guarantee the accuracy or the applicability to your situation. Please consult a qualified professional. If you use a 0% interest value, the calculator will automatically use a default value of .001. Please be aware that the values may vary slightly.