Buy vs Rent - Puma & Associates Realty

If you are renting, you are actually already paying a mortgage! You are paying your landlords mortgage while you allow your landlord to capitalize on equity and appreciation.

  • Typically most rent payments increase 3% per year while 30 year fixed rate mortgage payments remain the same for the life of the loan.
  • Given today’s low mortgage rates, your mortgage payment, taxes, insurance, & maintenance will most likely be lower than your current rent payment, especially when you factor your future rental increases.
  • Being a homeowner will also allow you to build wealth through equity as you pay down your mortgage and as the home appreciates.
  • Your mortgage interest paid is also a tax deduction (see your tax adviser for details).

For a specific calculation of your financial situation and to discuss first time buying a home, please send us a message.

Purchase Price
The total purchase price of the home that you wish to buy.
Interest Rate
The expected percent interest rate you will get on your mortgage.
Down Payment
The percent down payment you wish to put towards the home. This affects whether or not you will have to pay PMI or not. If you pay 20% down or more you will not have to pay PMI (Private Mortgage Insurance).
House Appreciation
The percent of appreciation the home will gain every year you own it.
Term
The number of years it will take to repay the loan amount (30 years is common).
How Long?
How long do you plan on living in this location?
Monthly Rent
The monthly amount that you pay in rent.
Rent Rate Increase
The rate as a percentage that your rent will increase each year. 2.6% is average.

Rent vs. Buy Calculator

This calculator will assist you in determining if renting or buying a home is a better option for you. Mouse over the item to get a description.

Purchase Price: dollars
Interest Rate: %
Down Payment: %
House Appreciation: %
Term:
How long will you live here?: years
Monthly Rent: dollars
Rent rate Increase: %


Calculations by this calculator are estimates only. There is no warranty for the accuracy of the results or the relationship to your financial situation.
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