Is it better to rent or buy? Use this calculator to help decide.

This calculator uses information you provide to estimate how much you’ll save either renting or buying a home. It asks about your current renting situation and the home you may want to buy. It also makes some assumptions about mortgage insurance and other costs, which can be significant. The results are an estimate meant for educational purposes only.

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Understand your rent vs. buy calculator results.

Once you enter information about your renting situation and the property you’re interested in buying, this calculator provides a few estimates. It tells you how much you may save either buying or renting over the course the time you select to live in the purchased property. The results also include information on different expenses that can be part of buying a home, and they let you look either at your total costs or your monthly costs. 

Rent vs. buy: Which is best for you?

Before deciding whether it’s best to rent or buy, consider your situation. Weigh the pros and cons of renting vs. buying to determine if you’re ready for the journey to homeownership. Along with your calculator results, use the following notes on renting vs. buying to help you decide if homeownership may be right for you.

Reasons to rent

  • Monthly payments are predictable and may be lower than mortgage payments.
  • Rent payments may include appliances, furniture, utilities, and even cable or internet.
  • Repairs and maintenance are typically handled and paid for by the landlord.
  • There’s no investment risk if the housing market changes.
  • Lease agreements are shorter-term commitments and have more flexibility than mortgages.

Reasons to buy

  • A fixed-rate mortgage has consistent principal and interest payments. Remember: taxes and insurance can vary from year to year.
  • Mortgage interest, property taxes, and points may be tax-deductible (consult your tax advisor).1
  • Since you’re the owner, you have the freedom to make changes or improvements to the property.
  • Monthly payments build equity and that equity can be used for other financial needs, like education, home improvement, etc.
  • There’s potential to make a profit when you sell, if your home value has increased.

Your dream of owning a home is within reach.

If you’re looking for affordable home loans, you’ve come to the right place. Our affordable mortgage options feature low down payments, assistance funds for closing costs and flexible qualification guidelines to fit your unique financial situation. Explore our programs to see how we can help you open the door to your future.

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Disclosures

  1. U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.

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Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Visit usbank.com to learn more about U.S. Bank products and services. Mortgage, home equity and credit products offered by U.S. Bank National Association and subject to credit approval. Deposit products offered by U.S. Bank National Association. Member FDIC.

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Conforming fixed-rate estimated monthly payment and APR example: A $405,000 loan amount with a 30-year term at an interest rate of 6.625% with a down payment of 25% and no discount points purchased would result in an estimated monthly principal and interest payment of $2,594 over the full term of the loan with an annual percentage rate (APR) of 6.794%.

Estimated monthly payment and APR calculation are based on a down payment of 25% and borrower-paid finance charges of 0.862% of the base loan amount. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Estimated monthly payment does not include amounts for taxes and insurance premiums and the actual payment obligation will be greater.

Calculators are provided by Leadfusion. This calculator is being provided for educational purposes only. The results are estimates that are based on information you provided and may not reflect U.S. Bank product terms. The information cannot be used by U.S. Bank to determine a client's eligibility for a specific product or service. All financial calculators are provided by the third-party Leadfusion and are not associated, controlled by or under the control of U.S. Bank, its affiliates or subsidiaries. U.S. Bank is not responsible for the content, results, or the accuracy of information.