Rent vs. Buy: $250K Home, 10% Down, 6.5% Rate vs. $1,200 Rent
Buying a $250,000 home with only 10% down at 6.5% versus renting at $1,200 per month over 7 years, factoring in PMI costs and equity building.
How to use this tool
- Enter home price, down payment, mortgage interest rate, current monthly rent, annual home appreciation, annual rent increase and years to compare in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your buy scenario equity and the full breakdown beneath it.
First-time buyers with only 10% down can see whether buying a $250,000 home makes financial sense versus renting at $1,200 per month over 7 years.
Frequently asked questions
- What costs are not included?
- This model excludes property taxes, maintenance (~1% of home value/year), HOA fees, insurance, and transaction costs. Add these to the buy side for a more complete comparison.
- When does buying always win?
- In high-appreciation markets with long time horizons, buying typically dominates because leverage amplifies gains. Renting wins in stagnant markets when renters invest the difference aggressively.