• Home ownership may be the "American dream," but it's also a big responsibility - after all, a house is the most expensive purchase most of us will ever make. Carefully consider your situation before deciding whether it's best to rent or buy.

    Rent vs Own Calculator

  • Why buy instead of rent?

    • Your monthly payments build equity and lead toward home ownership.
    • With a fixed-rate mortgage, your monthly payments will remain the same for the life of your loan.
      Your mortgage interest may be tax-deductible. Property taxes and mortgage points may also be deductible; consult your tax advisor.
    • If your home increases in value, you can make a profit when you sell.
    • A home can be passed on to children or other family members.
    • Home equity (the amount you own) can be used to finance educational expenses, home-improvement projects, small-business startup costs or other needs.
    • You can make changes or improvements at will.
    • A landlord can't decide to sell your house and force you to move.
  • Why rent instead of buy?

    • Monthly payments may be lower than mortgage payments. Use our mortgage calculator to determine what your mortgage payments may be.
    • Compared with a mortgage, a lease is a short-term commitment.
    • Someone else performs (and pays for) repairs.
    • Rent payments may cover appliances, furniture, utilities and even cable/internet.
      No significant down payment or loan closing costs are required to start renting.
    • Landlords might not scrutinize your credit history the way mortgage lenders will.
      Rent payments that are a few days late typically won't hurt your credit score.
    • It's easier to sign a lease than to get approved for a mortgage.
    • There's no investment risk if the housing market changes.
    • You may be able to avoid home insurance premiums or association fees.