For families, deciding whether to keep renting or buy a home is one of the largest money decisions there is. Comparing rent with a mortgage payment alone gives the wrong answer.
The full monthly cost of owning
- Principal and interest on the mortgage.
- Property taxes and homeowners insurance, often paid through escrow.
- HOA dues, flood insurance where required, and mortgage insurance on smaller down payments.
- Maintenance and repairs, often budgeted at about 1% of the home's value a year.
What owning gives back
Part of each payment pays down the loan, and the home may rise in value. In Florida, the homestead exemption lowers the tax bill on a home you live in.
Time matters
Buying and selling cost money: closing costs going in and agent fees going out. The longer you stay, the more likely owning comes out ahead.
Our rent or buy calculator puts both on the same page.
General information, not financial advice. Talk to a lender and a real estate professional before deciding.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
