Best free calculators before you buy a house

The four numbers that change an offer

Most people start with listing photos. The buying decision is four numbers. Monthly principal and interest from a best mortgage calculator. Five-year cost of renting versus buying from a rent vs buy calculator. Which quote is cheaper from a loan comparison calculator. How much equity you start with from loan-to-value.

If any one of those is ugly, the house is more expensive than the asking price suggests. Use the posts below for the exact search you are typing today: best mortgage calculator, is it cheaper to rent or buy, and compare two loan offers.

Monthly payment first, not the sticker price

A $400,000 house is not a $400,000 decision. At 6.5% for 30 years with 20% down, the loan is $320,000 and principal and interest alone is about $2,022 a month. Taxes and insurance sit on top. That is the number that has to fit next to rent, groceries, and an emergency fund.

Enter the offer price minus cash down, the rate on the quote, and the term. If the payment only works at a teaser rate, you do not have a payment you can keep.

Then ask whether buying beats renting

Buying wins later if the house rises in value and you stay long enough to spread closing costs. Renting wins early if your annual rent is a small slice of the purchase price and you would otherwise drain cash for a down payment.

A useful check: if yearly rent is under about 5% of the home price, renting is often cheaper in the first five years after closing costs. On a $400,000 home that is about $1,667 a month in rent. Run your own rent, price, and expected appreciation instead of using a national average.

Frequently asked questions