Should you rent or buy a home?

Find out in minutes by using our simple Rent vs. Buy Calculator below. Just enter a few numbers (like your monthly rent) to compare the costs and potential savings of both options. Then contact NewRez to discuss your homeownership options!

Is renting cheaper than buying?

When weighing the benefits of renting versus buying, the most important consideration is time. The longer you plan to stay in your new home, the more sense it makes to buy. Simple, right?

But there are other financial factors involved here. And, of course, there’s more to life (and this decision) than money. So, before you decide whether renting or buying is right for you, here are a few more things to consider:

  • Peace of mind. When you own a home, you have the option to live there for as long as you like (provided you keep up with your mortgage payments). When you rent, your landlord has the option to raise your rent, sell the property, or just not renew your lease.
  • Monthly payment. As mentioned above, rent payments can increase over time without warning. A fixed rate mortgage, on the other hand, features a fixed monthly payment year after year (estimate your monthly mortgage payment). So, you have a better handle on your housing costs from month to month.
  • Upfront Costs. Renting typically requires a security deposit, which you can get back at the end of your lease. Buying, on the other hand, means you’ll need a down payment of at least 3% (or higher).
  • Home Equity. There are obviously more upfront costs when you buy a home. As a buyer, however, you continue building equity with every mortgage payment you make. And you can borrow against that equity down the road.
  • Maintenance. Renting means never having to fix a leaky roof. Buying means the leaky roof and other maintenance costs are your responsibility. The good news is you can use your home equity to pay for major repairs.
  • Remodeling. Renters are typically not permitted to customize their home. Buyers, on the other hand, can make home improvements big (new kitchen) and small (new paint) to fit their specific style and needs. Again, your home equity is a smart way to finance it all.
  • Investment. A home is a financial asset that can appreciate over time. When you buy, that asset is yours. By renting, you are essentially funding someone else’s investment.

 

More mortgage calculators

How much home can you afford? Does it make sense to refinance? Find these answers and more with our handy home financing calculators:

Monthly Mortgage Payment Estimator

Loan Amount Estimator

Income & Debt Calculator

Refinance Calculator

Loan Term Comparison

This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to credit, underwriting and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.