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February 17, 2022

Decide What's Right - Rent or Buy?

Home Buying

Maybe you already know what's right for you between renting or buying, or maybe you're trying to figure out the best option. Either way, the more educated you are, the better informed you'll be.

Renting may be an option if you:

  • Plan to move around and don't want to be tied to one location
  • Don't have the funds for a down payment and closing costs
  • Can't afford the potential maintenance costs of owning (repairs, lawn care, etc.)
  • Are saving for the future

Buying may be an option if you:

  • Plan to stay in one location
  • Want to build equity over the long-term
  • Have funds for a down payment and closing costs
  • Want the potential tax advantages (check with a tax advisor for details)
  • Can afford the maintenance costs of owning (repairs, lawn care, etc.)

Here's a snapshot of how renting and buying may differ:

Costsswipe to compare Renting Buying
Initial Costs Rental application fees, broker/agent fee (if applicable), security deposit, first-and sometimes last- month's rent, moving expenses Earnest money, down payment, closing fees, moving expenses
Ongoing Costs Rent, renter's insurance (if applicable), some utilities may be paid by the landlord Mortgage, property taxes, homeowner's insurance, homeowner's association dues (HOA)/condo fees (if applicable), private mortgage insurance (if applicable)

Here's a snapshot of some benefits/features of renting and buying:

RentingBuying
Short-term flexibilityLong-term stability
Ability to move around, change location if needed - especially if new to an areaBuild value over the long term
Don't have to worry about repairs and maintenancePride of ownership
Monthly costs are usually fixed for the term of the leaseInterest and property taxes are usually tax deductible - check with your tax advisor
Some utilities may be included in your rental paymentFewer restrictions, such as freedom to make home updates, get a pet, and more

Still not sure what's right for you? Meet with one of our mortgage experts to see if buying is an option for you.