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Rent vs. Buy | PrimeLending
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Rent vs. Buy Calculator

Should you buy or should you rent? Only you can answer that question, but our Rent vs Buy Calculator will help you make this important financial decision. We’ll take the important costs associated with renting each month and compare with the complexity of buying a home, so you know which decision is best based on your situation.

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What is an amount you’re comfortable paying for a home?

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You can enter any number or percentage. Some programs allow down payments as low as 3%. Just remember, the more you put down, the less your payment will be.

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We’re using the current average mortgage rate to calculate payments. Your actual rate may vary depending on credit score, loan type and other factors.

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How much per month are you paying for rent?

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Our estimate will improve as you enter more details below:

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Average annual premium insurance typically costs between $300 and $1,000. For a more precise estimate, divide your home cost by 1,000 and multiply by $3.50.

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Utilities costs may include electricity, water, gas, internet and more. Estimate how much you would spend in utilities and enter that number here.

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HOA fees can run between $20 and $400 per month. If you’re interested in purchasing a home with an HOA/Condo fee, enter that monthly cost here.

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Maintenance costs can vary year to year. Setting aside 1% of your home purchase price is recommended.

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Property taxes may vary based on the county your home resides in. You can calculate property tax by dividing the county’s tax rate with the target cost of your home.

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The average cost for renter’s insurance is between $10 and $15 per month.

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Annual rent increases vary based on location, landlord and the area’s supply and demand.

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Utilities costs may include electricity, water, gas, internet and more. Estimate how much you would spend in utilities and enter that number here.

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We entered the current average home price increase percentage in America. You can change to any percentage to compare costs.

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Taxpayers may pay anywhere between 10% and 39.6% income tax depending on which tax bracket they fall under. This box is currently shows the average of all income tax rate brackets.

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Based on the assumptions you have input, you would save approximately $74,557 (in today's dollars) by buying a home, rather than renting, over a 30 year period (does not include the effects of HOA fees or utility costs).
Renting Costs:
$1,512
Buying Costs:
$1,626

These calculations are tools for learning more about the mortgage process and are for educational/estimation purposes only. Payment shown does not include taxes, insurance, or mortgage insurance (if applicable). This does not constitute an offer or approval of credit. Contact a PrimeLending home loan officer for actual estimates.

*For example, a Conventional fixed rate loan with a loan term of 360 months, loan amount of $400,000, down payment of 20%, and a 7.25% interest rate at cost of .297 points ($1,188) paid at closing by borrower will result in an annual percentage rate of 7.347% and a monthly payment of $2,728.71. Loan scenario assumes a credit score of 740+. Rates pulled 5/23/25, rates subject to change. Loans are subject to borrower qualifications, including income, property evaluation, and final credit approval. Payment shown is principal and interest only, and does not include amounts for taxes and insurance premiums (if applicable). The actual payment obligation will be greater.

Here is your estimated costs of renting vs buying based on the numbers you provided. Want to see more options? Just enter new numbers to calculate and compare.

 
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