Rent vs. Buy Calculator

Let’s Crunch Some Numbers
The Rent vs. Buy Calculator is a tool to help you decide whether or not it makes sense to keep on renting, or to purchase a home.
This calculator will help you figure out how much you can afford in a mortgage, comparative to what you’ve been paying in rent.
Renting a Home
Monthly Rent 
Total amount of rent paid to a landlord per month.
$
Renter's Insurance 
Insurance that covers a renter's belongings and liability on a rental property.
$
Annual Rent Increase 
Yearly average rental increase rate.
Buying a Home
Purchase Price 
The price of a home a buyer is interested in.
$
Down Payment 
The amount of money you would pay upfront towards your home purchase. There are loan programs that allow a minimum 3% down payment option. VA and USDA Loans offer a 0% down payment. Compare different loan benefits such as low equity/down payment with our Loan Options Chart.
$
Zip Code 
Purchase property zip code.
Years Before Selling 
Years spent owning a home before selling a home.
A person who is active in the military or has been honorably discharged. Qualified Veterans can receive 100% financing and do not have to pay Private Mortgage Insurance (PMI).
Private Mortgage Insurance (PMI) is paid in monthly installments by a borrower or upfront as part of the closing costs. This insurance allows a lender to lend more than 80% percent of the property value while protecting the lender of risk or default on the home loan. PMI is only needed when the down payment is less than 20%. This insurance can be requested for removal once the mortgage is paid down to 80%. PMI is automatically removed with no request when the mortgage is paid down to 78%. Qualified Veterans do not have to pay PMI.
Closing Costs 
Refers to the lender's cost for closing a loan or all the costs associated when a buyer closes on a home. Private Mortgage Insurance (PMI), which is needed for when the loan amount exceeds 80% of the home purchase price, may be included if the buyer wants to pay PMI upfront instead of paying monthly.
$
Appreciation Rate (per year) 
Yearly increase in a home's value over a period of time.
Cost to Sell 
Commission percentage cost that the Seller pays when selling a home, which is split between the Buyer's Agent and Listing Agent.
State Income Tax Rate 
Estimated monthly tax on earned income (wages, salaries, commission) and unearned income (dividends, interest, rents) imposed by state and federal government. Specific income tax brackets and rates can be found here
Term of Home Loan 
The number of years you would like to structure your home loan. It's important to remember that the shorter the term, the higher the mortgage payment.
Property Taxes 
This is an estimated number - Property Taxes are calculated by multiplying a town's General Tax Rate by the property's assessed value, which is determined by the municipal's tax assessor. A town's General Tax Rate is used when calculating property taxes - a list of general property tax rates by town in NJ can be found here.
$
Homeowner's Insurance 
Annual homeowner's insurance covers damage to or losses occurring on the homeowner's property and inside the home - also, known as hazard insurance. Coverage can include liability for accidents that happen on the property or in the homeowner's house by the homeowner, family members or pets.
$
Home Maintenance Cost 
Annual cost associated with maintaining a home.
$
Home Ownership Assumptions 
Compare
disclosure assumptions
  • Mortgage interest rates quoted assumes a FICO score of 760
  • Maximum loan-to-value ratio of 80% on a primary residence
  • Interest rates and Annual Percentage Rates (APR) are assumptions based on a purchase transaction.
  • Interest rate assumptions are based on a loan amount of $300,000
  • The mortgage interest rate, Annual Percentage Rate (APR) and monthly mortgage payment may be different based on the specific terms, verification of information, credit history, property type, and other contributing factors as determined by Get A Rate.
  • Subject to Get A Rates underwriting approval, not all applications are approved.
  • Rate assumptions are for the state of New Jersey.
  • Payments shown are principal and interest payment only and do not include taxes and insurance.
  • Mortgage Rates are subject to change daily without notice.
  • Restriction may apply
  • Private Mortgage Insurance has not been added into the payments disclosed. FHA, VA and conventional loans with a loan to value ratio greater than 80% will require Private Mortgage Insurance (PMI), unless priced as a no PMI option.
  • Lender Fee $995
  • Single Family Residence
  • Rate assumptions are based on 30 day rate locks.
  • Rate assumptions are based on December 5, 2020 pricing.
© 2020. Get A Rate LLC. All Rights Reserved

NMLS #907795 Licensed Residential Mortgage Lender in CA, WA, GA, TX, PA, CT, FL, SC and NJ (by the NJ Department of Banking and Insurance). Equal Housing Opportunity Lender. When and if acting as a broker, Get A Rate will not make commitments or fund mortgage loans. Registered NY Mortgage Broker. All NY mortgage loans are arranged with third party lenders - Get A Rate LLC does not directly offer or guarantee NY interest rates or loan programs and does not directly issue commitments or make final decisions on loan terms. Authorized website by the New York State Department of Financial Services.

Get A Rate LLC is an FHA Approved Direct Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the Federal government. These programs are not a commitment to lend and program guidelines are subject to change.

Additional Disclosures

Rates as of 12/5/20. Recently advertised rates are subject to change without notice. Advertised rates are based on an owner-occupied, single-family, residential properties, a credit score over 760, 75% LTV purchase/rate term, the debt-to-income ratio is less than 36%, and an escrow account for the payment of taxes and insurance.

If LTV > 80%, PMI will be added to your monthly mortgage payment on conventional loans. FHA Loans will always have upfront MIP as well as annual MIP added. Military/VA loans will require a VA Funding Fee unless otherwise exempted.

An advertised rate is not guaranteed and does not constitute an approval. Actual payments will vary based on your individual situation and current rates. Not all applicants will be approved. Minimum credit score requirements apply. The lock period for your rate is 30 days. Fees and charges may apply.

Full documentation, acceptable properties, insurance, and additional underwriting is required. Loans are secured by liens against real property. Terms, conditions, and restrictions apply. NY Loans are arranged through third parties. Lending services may not be available in all areas.

Please remember that we don’t have all your information. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Get A Rate offers a wide variety of loan options. You may still qualify for a loan even if your situation doesn’t match our assumptions. To get more accurate and personalized results, please call to talk to one of our mortgage experts.

Calculations computed by Get A Rate Rent vs. Buy and Affordability calculators are estimations. Get A Rate is not an accounting firm or financial advisor. Please consult a tax professional and/or financial advisor for more accurate information.