Question 1

Is it cheaper to rent or buy a home?

Accepted Answer

It depends on your local market, how long you plan to stay, and your finances. Buying builds equity and locks in your payment, but comes with closing costs, maintenance, and a larger upfront commitment. Renting offers flexibility with lower upfront costs. Use our Rent vs. Buy Calculator to see the exact breakeven point for your situation.

Question 2

How do I calculate rent vs buy?

Accepted Answer

A rent vs. buy calculation compares the total cost of renting (monthly rent × years + opportunity cost of security deposit) against the total cost of buying (mortgage payments + property taxes + insurance + maintenance + closing costs, minus equity built and appreciation). Our calculator does this automatically — just enter your rent, home price, down payment, and mortgage rate.

Question 3

What is the 5-year rule for buying a house?

Accepted Answer

The 5-year rule suggests you should plan to stay in a home for at least 5 years before buying, because closing costs and transaction fees typically take that long to offset through equity and appreciation. If you move sooner, you may lose money versus renting. Our calculator shows your exact breakeven point based on your specific numbers.

Question 4

What credit score do I need to buy a house?

Accepted Answer

Most conventional loans require a minimum 620 credit score, while FHA loans accept scores as low as 580 (or 500 with a 10% down payment). Higher scores (740+) qualify for the best mortgage rates, potentially saving tens of thousands over the life of your loan. Use our Credit Repair Roadmap if your score needs improvement before buying.

Rent vs. Buy Calculator

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