Rent Vs own

Should you rent or buy a home using your VA home loan benefit?

Below is a comparison between renting and owning over a 5-year period. Let’s assume the home value appreciates at a rate of 3% per year, which is a modest estimate. For the mortgage, we’ll assume it’s a fixed-rate mortgage, so the payment stays constant, and part of each payment goes towards the principal, building equity. The rent will also increase by 2% annually, which is common to account for inflation and market conditions.

Here's a simplified table for the scenario: 

Year Total Rent Payments Total Mortgage Payments Home Value Equity Accumulated
1 $30,000  $36,000  $515,000  $15,000 
2 $61,200  $72,000  $530,450  $32,450 
3 $93,624  $108,000  $546,364  $52,364 
4 $127,296  $144,000  $562,755  $74,755 
5 $162,242  $180,000  $579,638  $99,638 

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