Renting vs. buying: what to consider
Buying builds equity and gives stability, but comes with taxes, insurance, maintenance and transaction costs. Renting offers flexibility and keeps your cash available to invest.
Think in total cost, not just the payment
A mortgage payment is only part of the cost of owning. Property tax, insurance, HOA dues and roughly 1% of the home’s value per year in maintenance can add hundreds of dollars a month.
Time horizon matters
The longer you stay, the more principal you pay down and the longer appreciation compounds, which is why buying tends to win over longer stays.
Frequently asked questions
A common guideline keeps total housing costs under about 28% of gross monthly income and total debt payments under 36%. Lenders also weigh your credit score, savings and down payment.
Because of closing and selling costs, buying commonly needs several years to beat renting. Our Rent vs. Buy Calculator shows your personal break-even year.
A larger down payment lowers your loan, interest costs and (below 20%) private mortgage insurance, but ties up cash you could invest or keep as a safety net.