Mortgage ConsultMortgage Guidance with Kit Noles & Mike Graves

Calculator

Rent vs. Buy Calculator

Compare the long-run cost of renting and owning, year by year, using your own assumptions.

$
$
%
$
%
$
$
%
%

Your assumption; values can also fall

%
%

% of price

%

% of value when you sell

%

What the renter earns on money not spent on a down payment

After the period you chose

—

    Estimates only, based on the numbers you enter. Not a Loan Estimate, rate quote, offer or commitment to lend. Actual terms depend on credit, property, program and market conditions.

    How this comparison works

    Each month, the buyer pays principal, interest, taxes, insurance, HOA dues and maintenance; the renter pays rent. Whoever spends less that month invests the difference at the return you choose. The renter also invests the down payment and closing costs up front. At each year-end, the buyer's net worth is the home's value minus selling costs and the loan balance, plus any invested savings.

    The assumptions decide the answer

    Home values, rent growth and investment returns are guesses, and small changes swing the result. Try pessimistic and optimistic versions. This also leaves out taxes, mortgage insurance, moving costs and the non-financial reasons people buy or rent. Thinking about buying? See affordability and the getting started FAQ.

    Common questions

    Is it better to rent or buy?

    It depends on how long you'll stay, home price growth, rent increases and what you'd earn investing the money instead. Buying usually wins the longer you stay, because selling and buying costs get spread over more years. Try a few assumptions to see how sensitive the answer is.

    What does this comparison leave out?

    Income taxes, mortgage insurance, moving costs and the personal reasons people buy or rent. Treat it as a way to test assumptions, not a prediction.

    Want real numbers for your scenario?

    I'll run your situation against actual program guidelines and walk you through every line.

    Start Your ApplicationTalk to Kit and Mike

    Applications open in a new tab on Neighborhood Mortgage's secure portal.