Should I Get a House?



This tool helps compare the cost of renting vs. buying a place to live. It takes into account taxes, PMI, and other factors that some calculators miss. A cash-flow model compares the cost of renting to the cost of buying (and eventually selling) a home.

Disclaimer:


This tool is for fun and informational purposes only and is not legal nor financial advice. Please use at your own risk!

Current Situation

Marital Status:

What's your marital status as reported on your taxes?

Adjusted Gross Income:

What's your (and your spouse, if married) adjusted gross income? You can find this on your taxes, but it's usually your total annual income minus contributions to retirement accounts.

State Income and Sales Tax:

How much state income and local sales tax do (and your spouse, if married) pay per year?

Other Itemized Deductions:

How much other money are you able to claim in deductions on your taxes? This includes charitable donations, student loan interest paid, and more.

Monthly Apartment Rent

How much do you spend on rent every month?

Home Purchase Costs

Purchase Price:

How much is the cost of the house?

Down Payment:

How much is the house down payment?

Purchase Closing Costs:

Typically between 2-5% of the home price and can include things like inspections, mortgage origination fees, title insurance, third-party fees, origination fees, etc.

Purchase Flat Costs:

How much is spent on purchase flat costs (e.g. other fees that aren't included in the closings fee like HOA estoppel, title search, settlement fee, etc.)?

Recurring Home Costs

Mortgage Interest:

How much is the mortgage interest?

PMI Rate:

PMI rate will be quoted by your lender and varies based on your credit score and down payment size. It typically ranges from 0.22% to 2.25%.

Monthly HOA & Extra Utilities:

How much extra (vs. when you were renting) do you expect to spend on utilities in the house (HOA, power, water, cable, internet, gas, etc.)?

Home Maintenance / Year:

How much do you expect to pay annually for upkeep (e.g. repairs, minor renovations, etc.)?

Home Insurance / Year:

How much is annual home insurance?

Other Home Inputs

Inflation Rate:

How much do you expect inflation to be over the years (historically has been around 2%)?

Home Price Appreciation Rate:

How much do you expect the home to go up in value over the years?

Property Tax Rate:

What is the property tax rate in the area?

Years Staying in the House:

How long do you expect to stay in the house before selling it?

Sale Closing Costs:

How much do you expect the the closing costs to be on the house after you have lived there over the years and sell it?

Rate of Return on Investment:

Should I Get a House?:

Final Cumulative Profit:

Model Result