RENTING vs. BUYING...

Buying versus Renting




There are many advantages to buying a home versus renting one. View these advantages in the Buy vs. Rent Comparison Chart, or view a financial comparison of buying versus renting in the Buy vs. Rent Calculator.



Your income, savings, and monthly expenses play an important role in determining how large a mortgage you can afford. To figure out the amount you can afford, please click Affordability.















Savings: Buying





In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.



Buy vs. Rent Comparison

The chart below shows a cost comparison for a renter and a homeowner over a seven year period.







The renter starts out paying $800 per month with annual increases of 5%

The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000

After 6 years, the homeowner's payment is lower than the renter's monthly payment

With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years


CLICK BELOW TO SEE THE CHART PLEASE:

http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy.asp?subtitle=ypth