Renting vs. buying

Review the pros and cons before making one of your biggest decisions together.

Buy vs. Rent Calculator
Experts agree that owning a home is a great investment. You will build equity and enjoy good tax benefits.

But home ownership may not be for you. If your move is short term or if interest rates are high and property values deteriorating, it may be worthwhile to rent.

You can easily determine whether renting or buying a home will be worth it by locating a buy vs. rent calculator. This will give you a good idea of which option is better for you.

Buy vs. Rent Comparison
The chart below shows a cost comparison for a renter and a homeowner over a seven-year period.

• 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 home ownership, the homeowner's payment is less than the rental payment after 3 years.