Buy Now or Save a Bigger Down Payment?

Buy now or keep renting while you save? See what a larger down payment could change, without guessing what rates will do.

Compare buying now with renting a little longer and buying later. We use the same end date and the same monthly budget for both choices. Future rates and prices are examples you choose.

1. Your home and saved cash

Home price today ($)

This is the whole price of the home, not just the loan. Find it on the home listing.

Use a listing price or the price you might offer.

Cash you have for buying today ($)

Add up the cash you can use for the purchase and the reserve below. Leave retirement funds and money you cannot use out of this number. No bank connection is needed.

Use money already saved, not money you hope to save.

Down payment if you buy now ($)

For a $300,000 home, 10% is $30,000. This becomes money you own in the home. It is not a fee. Buying fees have a separate box.

Home price × down payment percent ÷ 100.

Down payment you want when you buy later ($)

For example, you might want $60,000 instead of $30,000. The calculator checks whether your saved cash could cover this goal, closing fees and your reserve after waiting. It does not assume a larger down payment removes mortgage insurance.

Enter a dollar goal for your larger down payment.

Rent each month while waiting ($)

This money goes to your landlord each month before you buy. It does not become ownership in the home. Renters insurance is entered below. Rent stays unchanged in this model.

Find this on your lease or the listing.

Cash you can add to savings each month while renting ($)

If you save $500 a month for 12 months, you add $6,000. We use the same housing-and-saving budget for both choices: rent + renters insurance + this amount. After buying, money left from that budget stays in cash. Savings earn 0% here.

Use what you can actually set aside after your other bills.

How long would you wait? (months)

You keep renting for this many months, then buy at the start of the next month. Future savings, home prices and mortgage rates are examples, not promises.

1 year = 12 months; 2 years = 24.

Compare both choices for how many years from today?

With 5 years here and a 1-year wait, buying now gets 5 years in the home. Waiting gets 1 year renting and 4 years owning. Waiting must be shorter than the whole comparison.

The end date is the same for both choices.

Fixed interest rate if you buy now (%)

Use a lender estimate or a rate you want to test. We assume a fixed rate for the whole loan. This is not a lender quote and does not show that you qualify.

For 6.5%, enter 6.5. Use the note rate, not APR.

Example fixed interest rate if you buy later (%)

Nobody knows the future mortgage rate. Enter an example. A future rate could rise instead of falling. This tool does not model an adjustable-rate loan.

Try a lower rate, the same rate and a higher rate.

2. Add loan details, closing fees and your cash cushion

Loan length for either purchase (months)

Both choices start a new loan with this full term. The wait option starts later, so it also finishes later if you make only the regular payments.

30 years = 360 months; 15 years = 180.

Cash you want left after closing ($)

If you want $10,000 left in cash, enter $10,000. It is not spent on the home. We check cash after closing and every month against this cushion. Choose your own amount; we do not decide what reserve a lender requires.

This is your cushion for emergencies and other needs.

Buying fees if you buy now ($)

Use a Loan Estimate or closing-company estimate. Do not include the down payment, refundable deposits, escrow balances, or taxes and insurance counted below. Include cash-paid points and upfront mortgage-insurance fees if applicable. Fees are paid in cash, not added to the loan.

Use estimated nonrefundable lender and closing fees.

Example buying fees if you buy later ($)

These are the same kinds of buying fees as the buy-now box. Try a higher estimate too. This tool does not predict future fees.

Use an estimate; future fees may change.

3. Add taxes, insurance and other housing costs

Use 0 only when a cost does not apply. These costs stay unchanged in the comparison.

Property taxes each year ($)

Annual taxes ÷ 12 gives the monthly cost. The seller’s old tax bill might change after a sale. Do not add escrow again; escrow pays this same bill. This entered cost stays the same in both examples.

Get a buyer-specific estimate from the local tax office.

Home insurance each year ($)

For $2,400 a year, the monthly cost is $200. This is property insurance, not mortgage insurance. The entered annual cost stays the same in both examples.

Get a quote; include separate flood coverage if needed.

HOA or condo dues each month ($)

Use the regular monthly dues. If charged yearly, divide by 12. The model does not predict special assessments.

Ask the association; use 0 if none.

Repair and upkeep budget each month ($)

An owner pays for repairs. Enter what you want to set aside. We count this as spent on upkeep, even if no repair bill arrives every month. Actual costs can be different.

A $3,600 annual budget equals $300 a month.

Renters insurance each month ($)

A $240 yearly policy costs $20 a month. We add it to rent during the waiting period.

Annual renters insurance ÷ 12.

Mortgage insurance if buying now ($/month)

Mortgage insurance protects the lender and is different from home insurance. Enter the lender’s monthly estimate. We do not infer it from your down payment.

Ask the lender. Use 0 only if it does not apply.

Months of mortgage insurance if buying now

Ask the lender how long to model this cost. The calculator stops it after your entered months or loan payoff, whichever comes first. It does not decide when cancellation is allowed.

Use 0 if there is no mortgage insurance.

Example mortgage insurance if buying later ($/month)

A bigger down payment may change loan costs. Enter a separate monthly estimate; do not assume the cost is zero without checking the loan requirements.

Ask for an estimate for your planned down payment.

Example months of mortgage insurance if buying later

Count these months from the later purchase, not today. Use the lender’s loan-specific rules, not an automatic cancellation date from this tool.

Use 0 if no mortgage insurance is entered.

4. Test future home prices and selling costs

Example annual home-price change (%)

This is your assumption. A $300,000 home at 3% becomes $309,000 after one year. It changes what the wait option pays and what the same home could be worth at the shared end date. Try a price fall as well.

0 = unchanged; 3 = growth; −3 = a fall.

Example selling cost at the end (%)

We assume you sell at the shared end date to compare ownership value. A 5% selling cost on $300,000 is $15,000. After selling fees and the remaining mortgage, the rest is your modeled ownership value.

Use a local estimate; there is no set fee for everyone.

Your calculator numbers stay in this browser. They are not saved or sent unless you choose to review and save a watch in your account.

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Could a bigger down payment help?

Enter your numbers or try the example. See cash needed, monthly housing costs, rent paid while waiting and the ownership value at the same end date.

Fixed-rate, fully amortizing loans. No lender approval or prediction. Escrow deposits, prepaid cash, refundable deposits, moving costs, utilities, income-tax effects, investment returns and costs not entered are excluded. Ask your lender for the complete cash-to-close amount; the cash check here covers only down payment, entered fees and your cushion.

Buy Now or Save a Bigger Down Payment?

Could a bigger down payment help?

Set a buying-payment goal