Renting vs. Owning
When you own your own home, you’ll enjoy many benefits that run the gamut from pragmatic
to psychological.
On the practical side, instead of paying rent to someone else every month, you’re
investing in your future. The tax advantages
alone appeal to most homebuyers, as mortgage interest and property taxes are deductible.
The potential for home equity is another highly motivating factor.
Although immeasurable, the intangible benefits of ownership are equally important
and, for some, even more compelling. Homeownership instills peace of mind, a sense
of permanence and stability, and pride of ownership. Plus it offers the freedom
to create your own environment—whether that means redecorating, remodeling, planting
a new garden—or just knowing that you could if you desired.
Renting vs. Owning Calculator
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Current Rent:
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Purchase Price of Home:
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Percentage of Down Payment:
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Length of Loan Term (years):
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Interest Rate:
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Years You Plan to Stay in This Home:
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Yearly Property Tax Rate:
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Yearly Home Value Increase Rate*:
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HOA Fees:
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Tax Bracket:
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Annual Rental Rate Increase:
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Result Returned:
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Rent
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Buy
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Value of Home after 20 Years of Appreciation:
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Remaining Balance After 20 Years:
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Home Equity:
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Payments**:
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Property Tax:
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HOA Dues:
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Down Payment:
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Tax Savings (at 28%):
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Net Payments:
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Minus Home Equity:
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Total Cost After 20 Years:
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Total Savings for Owning 20
Years:
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*Estimate for calculation purposes only.
**Interest and principal only; does not include property insurance or mortgage insurance, which may be required by your lender.
