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Should I rent? Sould I buy?

Decide what’s right—rent or buy?

Maybe you already know what’s right for you, 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.

Initial Costs

    Renting

  • Rental application fees
  • Broker/Agent fee (if applicable)
  • Security deposit
  • First—and sometimes last—month's rent
  • Moving expenses

    Buying

  • Mortgage application fees
  • Earnest money
  • Down payment
  • Closing fees
  • Moving expenses
 

Ongoing Costs

    Renting

  • Rent
  • Renter's insurance (if applicable)
  • Some utilities may be paid by the landlord—be sure to ask

    Buying

  • Mortgage
  • Homeowner's insurance
  • Homeowner's Association Dues (HOA)/Condo fees (if applicable)
  • Private Mortgage Insurance (if applicable)