Monthly payment
Includes principal, interest, taxes & insurance.
Loan summary
Total interest
$446,406
Total paid
$796,406
Payoff date
August 2056
Payments
360 mo
Balance over time
Remaining loan balance by month
Set a strategy on the left to see your savings
Try adding an extra monthly payment or a lump sum.
Balance over time
Remaining loan balance by month
Compare two strategies
See which approach saves you the most.
Rate sensitivity
How a ±1% shift from your 6.5% rate changes total interest over 30 years.
Principal & interest only — escrow and fees not included. Based on 30-year term and $350,000 loan.
Buying builds more wealth
+$210,888
Buying leaves you $210,888 wealthier after 30 years
Breakeven
Year 1
Buy starts winning
Buy net wealth
$1,031,874
After 30 yrs
Rent net wealth
$820,986
Investment growth
Monthly rent now
$2,000.00
+3%/yr
Monthly own cost
$2,649.74
P&I + tax + ins.
Net Wealth Over Time
Home equity (buy) vs. investment portfolio (rent) over the loan term.
Estimates only. Assumes constant appreciation rates and does not account for taxes, maintenance, or transaction costs.
Renting vs. Buying — Honest Guide
Neither path is universally better. The right choice depends on your timeline, finances, and life goals.
Buying
Advantages
Builds equity over time
Every mortgage payment increases your ownership stake — rent payments build none.
Stability & predictability
A fixed-rate mortgage locks your P&I payment for the life of the loan. Landlords can raise rent.
Freedom to customize
Renovate, paint, landscape — no landlord approval needed.
Inflation hedge
Home values and replacement costs tend to rise with inflation, protecting your asset's real value.
Potential tax benefits
Mortgage interest and property taxes may be deductible, depending on your situation.
Considerations
Large upfront cost
High ImpactDown payment, closing costs, and inspections can total 3–6%+ of the purchase price before move-in.
You bear all maintenance
High ImpactHVAC, roof, plumbing — repairs are your cost. Budget 1–2% of home value per year.
Less flexibility to relocate
High ImpactSelling takes time and money. If you move within 2–5 years, transaction costs can wipe out appreciation gains.
Market risk
Medium ImpactHome values can fall. Buying near a market peak can leave you underwater if prices decline.
Opportunity cost of capital
Medium ImpactCapital tied up in a down payment can't be invested elsewhere.
Mortgage insurance (PMI) adds to monthly cost
Medium ImpactPMI is required until you reach 20% equity, adding to your monthly payment in the interim.
PMI typically drops automatically once your balance hits 80% LTV.
Renting
Advantages
Flexibility to relocate
Most leases are 12 months. Ideal for people unsure of their city, job, or life situation.
No maintenance burden
Landlord handles repairs. Your time and budget stay your own.
Lower upfront cost
Typically 1–2 months security deposit vs. tens of thousands in a down payment.
Invest the difference
If rent is cheaper than owning, investing the savings can outperform real estate in high-return environments.
Access to prime locations
Renting may be the only affordable option in high-demand urban markets.
Considerations
No equity accumulation
High ImpactRent is a pure expense. After years of payments, you own nothing.
Rent can increase
High ImpactYou're exposed to landlord price hikes, market conditions, or lease non-renewal.
Limited control
High ImpactNo major renovations, pets may be restricted, and the landlord may sell the property.
No inflation protection
High ImpactRent tends to rise with inflation, but your payments don't build a hedge like homeownership does.
Requires investment discipline
Medium ImpactThe "rent and invest the difference" strategy only works if renters actually invest consistently — many don't.
Rule of thumb: If you plan to stay 5+ years, buying typically wins financially. Under 3 years, renting is usually safer. Always consult a licensed financial advisor for guidance specific to your situation.