Rent or Buy Calculator

Rent or Buy Calculator

Is it smarter to continue renting, or are you ready to buy?

This calculator will help you decide whether it makes sense to rent or buy a home.

 

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TipMonthly Rent - Enter your current rent payment.
TipAnnual renters insurance - Enter how much you pay each year for renters insurance.
TipMortgage loan amount - Enter the amount you plan to finance. For example, if you are buying a $300,000 home with a 20% down payment, your loan amount would be $240,000.
TipInterest Rate - Enter the interest rate that you will pay on your mortgage. You can find current rates from Freddie Mac at www.freddiemac.com.
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TipLoan term - Enter the term you desire for your loan. Common terms are 15, 20 and 30 years.
TipDiscount points - Discount points are paid upfront to obtain a lower interest rate. Typically, one point equals 1% of the loan amount and will lower your interest rate by .25 percent.
TipClosing costs - Closing costs include a loan origination fee, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge, and other costs assessed at settlement. The closing costs usually are about 2% - 6% of the mortgage amount.
TipAnnual property taxes - Including this information provides you with a better idea of the total cost of homeownership. Your real estate agent can help you estimate this cost, and some home listings may include this information.
TipAnnual homeowners insurance - Most lenders require you to carry homeowners insurance. Including the information here provides you with a better idea of the total cost of homeownership.
TipAnnual home maintenance costs - Enter an estimate of annual home maintenance costs. This will give you a better idea of the total cost of homeownership.
TipAnnual homeowner's association dues - Many communities have mandatory homeowner's association dues. Including the information here provides you with a better idea of the total cost of homeownership.
TipIncome tax rate - Most mortgage interest is tax deductible. By entering your tax rate, the calculator can take into account any money saved through the mortgage interest deduction. Consult a tax advisor to find out if the deduction applies to your situation. For 2009 the federal tax rates are 10%, 15%, 25%, 28%, 33% and 35%.
TipHow many years do you expect to own this home? - There are up-front costs associated with buying a home. By estimating the years you plan to be in the home, the calculator can determine if you will be in your home long enough to recoup those costs.
While this calculator takes into account the home equity you will build from mortgage payments, it does not take into account the equity created from appreciation of your home's value, or, if you continued to rent, any increases in your monthly payments.

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Mortgage Rates

from the LendingTree Network

Loan Type
Rate
APR
30 Year Fixed Rate
4.75%
4.87%
15 Year Fixed Rate
4.25%
4.51%
5/1 Adjustable Rate
3.63%
3.61%
Disclosures >>
Updated Nov 8, 2009

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