Should I rent or buy a home?

The decision to rent or buy depends on many things like interest rates, local real estate prices and your long-term plans. Use this calculator to help you determine which option makes the most sense for you.

Why use this calculator?

Deciding whether to rent or buy a home can have you talking yourself into financial circles.

Ultimately, the decision comes down to your financial fitness, how long you plan to live in the home and what your cash flow looks like.

Ask yourself these three questions to find out whether renting or buying makes more sense for you:

1) Are you financially fit? The decision between renting or buying is less about home prices or rents and more about whether you’re ready to be a homeowner. What does your savings look like after a down payment is taken out? What is your credit score?

2) How long will you live there? If you only plan to live somewhere for two or three years, experts recommend renting.

3) What will your monthly payments be? There is a certain amount of money you will need to buy a home, complete the transaction and maintain it. Plus, you also need to factor in property taxes. There is no sense in rushing into homeownership before you can comfortably cover those costs.

This calculator can help you make the decision between buying or renting your next home.