Rent vs. Buy a Home Calculator
Should I rent or buy a house calculator
Use this calculator to consider the variables and see if renting or buying a home makes sense for you
Buying a home is considered a solid investment. But the decision to rent or buy home is a personal one, based on your unique needs and financial goals. Use this calculator to see which may make more sense for you today.
Questions about renting vs buying a home? UMB has answers.
Instead of asking if it’s a good time to buy a house, you might ask “is it a good time for me to buy a house.” While buying a house is usually considered a good investment, you should make the decision based on your personal and financial circumstances.
It might a good time for you to buy a house if you have steady income, stable plans for the immediate future and savings for a down payment. If you have considerable debt, unsure plans for the immediate future or simply feel pressure from friends or family, it may not be a good time for you to buy a house.
Either way, talking to a trusted financial advisor or a mortgage professional should be your first step in making the right decision for yourself.
Renting a home means you pay a monthly rental fee to a landlord to live in their property. Usually, some fees are required up-front, including first and last month rent, utility fees, and maybe application and background check fees. You have a consistent monthly rental payment, and the landlord covers repairs and other cost-of-ownership expenses. After your lease ends, you’re able to move without penalty.
Buying a home means you own a home most likely through a home mortgage loan agreement, borrowing a certain amount of money from a lender to finance the purchase. You pay the home loan monthly, along with property taxes, homeowners’ insurance and all other cost-of-ownership expenses. Buying a home can provide a sense of stability and may help build wealth if your home increases in value over time and your home equity increases.
Owning a home isn’t necessarily better; renting a home isn’t necessarily easier. Choosing to rent or buy a home depends on your financial situation, lifestyle and personal goals. It’s best to work with a trusted financial advisor to make a decision that’s right for you.
To avoid feeling overwhelmed, especially for first-time homebuyers, remember that your lender is there to walk you through everything. First, focus on what your needs are. Then, you can outline with your lender what you’re looking for so they can provide your best options. For more information, the UMB Mortgage team is here to help answer questions and support you in the home-buying journey.
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