See whether renting or buying a home is cheaper over 5, 10, or 15 years
The answer depends on how long you plan to stay. Buying makes sense in the long run because you build equity, but renting is cheaper if you'll move within a few years. This calculator factors in all the hidden costs most people forget: property taxes, maintenance, insurance, closing costs, and the opportunity cost of your down payment.
The rule of thumb is 5-7 years. That's how long it takes to build enough equity to cover closing costs on both buying and selling. If you might move sooner, renting is usually cheaper.
No — much of your mortgage payment in the early years goes to interest, not equity. And when you rent, the money you don't put toward a down payment can be invested and grow. Use the calculator above to see the actual math.