Renting vs Buying .

When you factor in the ability to build equity, the tax savings on mortgage interest and the appreciation
rate of your home’s value, buying a home becomes a better deal within just a few years.
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*Based on median US home sale price ($208,238) and monthly rent ($1,364) according to Zillow Research, April 2015.
Mortgage assumes 97% LTV loan with BPMI, 4% interest rate, and 720 FICO. Costs may vary in different markets.
t Borrowers should consult their own tax advisors to determine if they are eligible for deductions.
© 2015 Radian Guaranty Inc. All information contained herein is subject to change without notice. RAC599 6/15
$12,494
5-Year Summary Buying Renting
Cost (initial cost + monthly payments) $ 81,434 $83,204
Property Taxes (2%) $ 20,824 0
Home Value Appreciation (2%) ($21,673) 0
Tax Savings (15%, interest + property tax) ($ 8,908) 0
Equity Increase ($19,295) 0
Net Expense $52,382 $83,204
Renting
Buying vs.
Cost to buy includes 3%
down payment & closing costs
Cost to rent includes security
deposit, first & last month’s rent
Monthly
Cost
Over 5 years, buying is a $30,822 advantage over renting.
And it can be an even greater advantage depending on taxes and appreciation in your market.
vs.
Bottom line: the decision to buy is a big one, but there
are also big benefits when compared to renting.
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