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Serving all of Utah
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Rent vs. Buy

Renting vs. Buying a Front Home

Is it more cost effective to rent or buy?

Many people debate whether they should purchase a home or rent a property. If you are happy where you currently live and are tired of renting, it may be ideal for you to purchase a house. Buying a home has many advantages over renting and can more beneficial for you and your family in the future. A Team of Loan Officers have made it our goal to help renters find the perfect home within their budget. We offer free credit analysis, free qualifications for loans, and free consultations. If you are considering purchasing a home, we can help!

Why You Should Purchase a Home

While renting may be great for new couples or individuals who do not want to settle in one place, purchasing a home has a variety of advantages including:

  • Equity
  • Tax Deductions
  • Maintenance Control
  • Freedom to Be Creative

When you purchase a home, you can eventually accrue equity. When you rent a home, you are essentially paying your landlord’s mortgage or increasing their equity. Buying your own home allows you to accrue your own equity, which can be borrowed against in the event of an emergency or large purchase. Purchasing a home also allows you to deduct mortgage interests and property taxes from your taxes. Owning your own house also enables you to potentially avoid capital gains tax.

Renting a home can prohibit individuals and families from making the space their own. If you own a home, you are not restricted by a landlord. Instead of using a certain plumber to repair your leaky sink or avoid using nails to hang items around your home because your landlord forbids it, you have free reign to do whatever you please in your own house. You can paint the walls whatever color you desire, add on to your home, and can either handle your home’s maintenance problems on your own or hire a contractor.


Disclosure: Synergy One Lending, its loan officers and employees are not financial advisors. All information is offered as an inducement to place a mortgage loan. Your exact circumstances as well as conditions over the life of the loan will determine your savings if any. The terms discussed are for example and may not be relied on. Please consult with a tax professional to determine your savings if any.

Have questions? Contact us!

If you are still torn between renting or purchasing a home, we can help you decide. We can ensure you have the financial means to purchase a home, as well as determine which residential loans you may qualify for. Please dial 801-998-8292 today to schedule a free consultation!

Rent vs Buy Mortgage Calculator



Purchase costs are the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and typical closing costs.

Yearly costs are recurring monthly or yearly expenses. These include mortgage payments, condo fees (or other community living fees), renovation costs, maintenance costs, property taxes and homeowner’s insurance. Property taxes, the interest part of the mortgage payment, and in some cases, a portion of the common charges, are tax deductible. The resulting tax savings is accounted for in each item’s totals. The mortgage payment amount increases each year for the term of the loan because the tax credit shrinks each year as the interest portion of the payments becomes smaller.

Lost opportunity costs are tracked for the initial purchase costs and for the yearly costs. The former will give you an idea of how much you could have made if you had invested the down payment instead of buying your home.

Selling costs are the costs you incur when you go to the closing for the home you are selling. This includes the broker’s commission and other fees, as well as the remaining principal balance that you pay to your mortgage bank. “Proceeds from home sale” is the money that you receive from the person who is buying your home. This amount is equal to the value of the home that year and is shown as a negative number since it is not something that you spend money on, but rather, it is money you receive.

If your cumulative buying total is negative, it actually means you have done very well: you made enough of a profit that it not only covered the cost of your home, but also all of your yearly operating expenses.


Initial costs are the rent security deposit and, if applicable, the broker’s fee.

Yearly costs are the monthly rent and the cost of renter’s insurance.

Lost opportunity costs are calculated each year for both your initial costs and your yearly costs.

Leaving your rental is equal to the rent security deposit, typically returned to a renter at the end of a lease.