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should IRent or Own?

Rent is simple to compare month to month, but owning builds equity. This calculator weighs both over the years you plan to stay, so you can see when buying starts to pay off.

The short version

The longer you stay, the better buying usually looks. Upfront and selling costs get spread over more years, while your equity and the home's value keep growing.

More assumptions
"Return on savings" is what your down payment and closing costs could earn if you kept renting and invested them instead.

Net cost to own
Total cost to rent

Net cost to own = down payment, closing costs, and every monthly cost of owning, minus what you'd walk away with after selling, plus what your upfront cash could have earned. It doesn't include tax deductions or a future refinance.

Beyond the math

thePros & Cons

Owning Buying a home

  • You build equity. Every payment pays down your loan, and your home's value can grow over time.
  • A predictable payment. With a fixed-rate loan, principal and interest never go up.
  • It's yours. Paint, renovate, plant a garden, get a dog. No landlord approvals.
  • Texas homestead savings. Your homestead exemption lowers school taxes and caps how fast your taxable value can rise.
  • Stability. Roots in a neighborhood and a school district you choose.
  • Big upfront cash. Down payment, closing costs, and moving add up.
  • Repairs are on you. Roofs, HVAC, and foundations aren't cheap in Texas.
  • Less flexible. Selling takes time and costs money if your plans change quickly.
  • Taxes and insurance can rise. They're part of your payment and can go up each year.

Renting Leasing a home

  • Flexibility. Easy to move for a new job, a new city, or a change in plans.
  • Lower upfront cost. Usually just a deposit and first month's rent.
  • Fewer surprises. The landlord handles most repairs and big-ticket replacements.
  • Try before you buy. Live in an area for a year before committing to it.
  • No equity. Rent pays your landlord's mortgage, not yours.
  • Rent goes up. Increases at renewal are common and hard to plan around.
  • Less control. Rules on pets, paint, and changes, and the owner can decide to sell.
  • Less stability. Your lease is a year at a time.

Questions to ask yourself

is itTime to Buy?

  • Will I likely stay in the area at least three to five years?
  • Do I have savings for a down payment, closing costs, and a cushion for repairs?
  • Is my income steady, and am I comfortable with the full monthly payment?
  • Have I talked with a lender about what I can actually afford?
  • Do I want the freedom to make a home my own?
  • Would I rather put my monthly housing cost toward my own equity?
First-time buyer roadmap Mortgage calculator