Mortgage Calculator: Renting vs. Buying

Should I rent or buy a home?

Do you feel like you are throwing money away with every rent check?

Are you tired of waiting around for a landlord to fix or replace the outdated dishwasher? Do you often have to fight the urge to paint a dining room wall red? It may be time to consider buying a home.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended as a solicitation for any credit product or to provide credit advice. Calculators and input options are intended solely for general information and educational purposes. Calculations are hypothetical, and based on information and assumptions provided by you. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. You should not take any action on the basis of the information provided through this calculator. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Renting vs. buying: how to decide

There are benefits to renting and buying, so understanding your current objectives, as well as where you want to be in the future, is important to determine the benefits of both options.

Questions to ask yourself:

  • What can I comfortably afford?
  • Will I need to make changes to my monthly budget?
  • Is my income reliable?
  • What is my credit history?
  • Will I still be able to reach my savings goals?
  • How much space do I need?
  • How long do I plan to live here?
  • Do I have enough saved for a down payment and closing costs?
  • What kind of neighborhood do I want to live in?
  • What types of schools are in the neighborhood?

After considering these questions, contact BBVA Compass if buying a home seems like the right decision for you. We’ll talk you through all the details and help make your home buying experience as smooth as possible.

How to use this calculator

Renting/home purchase:

To compare the costs of renting vs. buying, enter the current or projected costs of renting and home purchase. To find property taxes, check MLS listings online, or contact your county’s assessor/recorder’s office or a local real estate agent. Calculate homeowner’s insurance, or contact an insurance agent for a quote.

Loan info:

Adjust the term to see how much your monthly payments may change based on your choice of a 15 or 30-year mortgage. The origination charge is generally between 0.5% and 1% of your mortgage loan, but check with your mortgage specialist to confirm. For Other Settlement Services, consider the cost of an appraisal, credit report, flood certification, tax service, lender and owner’s title insurance, and government recording fees.

Other assumptions:

Estimate the appreciation/depreciation rate of your home based on factors, such as the neighborhood, future developments, planned renovations, etc. How many years you plan to spend in the home may also determine whether renting or buying is your best option.