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 of buying a home vs. renting 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 owning a home vs. renting are equally important and, for some, even more compelling. Owning vs. renting 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
Reset| Results | Rent | Buy |
|---|---|---|
| Value of Home after 20 Years of Appreciation: |
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| Remaining Balance After 20 Years: |
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| Home Equity: | ||
| Payments**: | ||
| Property Tax: | ||
| HOA Dues: | ||
| Down Payment: | ||
| Tax Savings (at 28%): | ||
| Net Payments: | ||
| Minus Home Equity: | ||
| Total Cost After 20 Years: | ||
| Total Savings for Owning 20 Years: |
*Estimate for calculation purposes only.
**Interest and principal only; does not include property insurance or mortgage insurance, which may be required by your lender.
