Rent vs. Own

Home ownership is still one of the best investments available. Home purchases are made for many reasons, both practical and emotional. With the market climate, making the decision to purchase a home can be over whelming. Generally, a real estate investment will, over time, prove to be a sound one.

From the practical side, renting offers no potential for investment or long-term rewards. Owning a home, however, provides a valuable tax advantage since interest and taxes paid are deductible. This is especially significant in the early years. Almost the entire monthly payment applies to interest. This is true for a HELOC (home equity line of credit). Further, the creation of equity is very advantageous in calculating one's net worth. Equity increases as the mortgage is paid down and the property appreciates.

Emotionally, owning a home is an exciting and positive experience. Your creative side can reign with the freedom to make your living space uniquely yours. No more landlord issues. You are the owner. Your home is yours to create and make uniquely yours. It can instill peace of mind, pride of ownership, an abiding sense of permanence and fulfillment of the American dream.

A home can be a haven from all the other facets of today's busy pace of life. Each owner will leave imprints of his or her ownership, and will carry with them the satisfaction of ownership into future homes. It's still a smart move.

Be sure to visit our helpful links and resources page for additional help and information about your future home purchase.

Rent vs Own Calculator

Renting vs. Owning Calculator
Current Rent:
Purchase Price of Home:
Percentage of Down Payment:
Length of Loan Term (years):
Interest Rate: What's the current interest rate?
Years You Plan to Stay in This Home:
Yearly Property Tax Rate: What is this?
Yearly Home Value Increase Rate*:
HOA Fees: What's this?
Tax Bracket: What's this?

Tax Bracket:
Your tax bracket is used to estimate the amount of tax you'll pay based on your income.

If your taxable income is $8,025 or less, your tax bracket is 10%.
If your taxable income is between $8,025 and $32,550, your tax bracket is 15%
If your taxable income is between $32,550 and $65,725, your tax bracket is 25%
If your taxable income is between $65,725 and $100,150, your tax bracket is 28%
If your taxable income is between $100,150 and $178,850, your tax bracket is 33%
If your taxable income is between $178,850 and $48,385.00, your tax bracket is 35%

Annual Rental Rate Increase:
Rent Buy
Value of Home after 20 Years of Appreciation: N/A
Remaining Balance After 20 Years: N/A
Home Equity: N/A
Property Tax: N/A
HOA Dues: N/A
Down Payment: N/A
Tax Savings (at 28%): $0
Net Payments:
Minus Home Equity: $0
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.