Rent vs. Buy Comparison

Compare the financial implications of renting versus buying a home.

Buying a Home

Home Price: $350,000

Down Payment: $70,000

Interest Rate: 6.5%

Loan Term: 30 years

Property Tax Rate: 1.20%

Home Appreciation: 3.0%

Renting a Home

Monthly Rent: $2,000

Annual Rent Increase: 3%

Comparison

How long do you plan to stay?

7 years

Total Payments: $283,062

Home Equity: $177,290

Net Cost: $105,772

Total Payments: $183,899

Home Equity: $0

Net Cost: $183,899

Buying is cheaper

by $78,127 over 7 years.