Making a move? Let’s figure out what’s best for you: renting or buying your next home.
It takes more than looking at your mortgage payment to answer this question. Many factors like, your finances, family and job goals, and the local housing market play a critical role.
Both renting and buying come with unique benefits. Renting may seem like an expense, but it can be a practical choice if you are anticipating a relocation or working on building up savings and credit scores. A decision to buy, could be a great option if you are looking to establish long-term roots in a community and start building equity.
A good rule of thumb is called the 5% rule. While only one factor in the decision process, the 5% rules says it may be more beneficial to buy if the annual cost of owning a home, including mortgage payments, property taxes, and maintenance, is less than 5% of the properties purchase price.
The Rent vs Buy Calculator is a great tool to get you started with the decision process. By looking at different scenarios and becoming familiar with all the moving parts and costs with buying a home, you can start planning and setting your goals.