Rent vs. own calculator for Texas veterans
Every rent check is gone the day you pay it. A house payment builds something you keep. See how big that difference gets with your own numbers, and the year buying pulls ahead.
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Rent vs. own calculator
Example Texas numbers are filled in. Change any of them to match the home and the rent you’re looking at.
Renting
Buying with a VA loan ($0 down)
More assumptions
Where your monthly money goes in year one
Money gone for good, year by year
What waiting to buy could cost
Year-by-year numbers
| Year | Rent paid (total) | Owning: money gone | Home value | Loan balance | Your equity |
|---|
Estimate for illustration only. The rate shown is an example, not a current offer. Owning costs include principal and interest, property tax, insurance, HOA, upkeep and the closing costs you enter; the VA funding fee (unless you’re exempt) is added to the loan. “Money gone” for owning subtracts what you’d keep if you sold at the end of each year, after selling costs. Home values and rents can go down as well as up. The calculator doesn’t include tax deductions, a future refinance, or what a renter might earn by investing any monthly difference.
For illustration only. Results are estimates based on the numbers you enter and general assumptions, and may not reflect your situation. This is not a Loan Estimate, pre-approval, rate quote or commitment to lend. Any rate shown is an example, not a current rate or an offer. Your actual eligibility, loan amount, rate, payment and costs depend on your credit, income, property, appraisal and underwriting, and can change without notice. Not all applicants qualify. CrossCountry Mortgage, LLC NMLS #3029. Equal Housing Opportunity. Full disclaimer.
Rent builds your landlord’s equity, not yours
When you rent, the whole check goes to someone else, and it usually goes up every year. When you own, part of every payment pays down your loan, and the home’s value can rise while you live in it. Both of those become equity: money that’s yours when you sell or refinance.
Owning has costs renting doesn’t, like property tax, insurance, upkeep and the cost of selling someday. That’s why the calculator counts them. It compares the money you never get back on each side, so the result is a fair fight, not a sales pitch.
A VA loan tips that fight toward owning. You can buy with $0 down, so you’re not giving up savings to get in, and there’s no monthly mortgage insurance. With a fixed rate, your principal and interest stay the same for 30 years, while rent keeps rising.
When is the right time to buy?
- When you’ll stay past the break-even year. The calculator shows the year owning pulls ahead. If you expect to stay that long, buying is likely the better move. Expecting PCS orders soon? Many veterans keep the home as a rental and buy again with their remaining VA entitlement.
- When the payment fits your budget. VA puts residual income first, the money left after your house payment and bills, and that’s what my team qualifies you on. Check it with the affordability calculator.
- Not necessarily when rates are lowest. You buy the home once, but you may be able to refinance later. If rates come down, a VA streamline refinance (IRRRL) can lower your rate. Meanwhile, every month you wait is another rent check, and the price of the home you want may keep climbing.
- When your credit is ready. My team has no minimum credit score on VA purchase loans. See VA credit requirements and check where you stand.
Texas changes the math
- Property tax is the big one. Texas has no state income tax, but property tax rates are high, especially in newer neighborhoods with a MUD or PID. Use the real combined rate for the address you’re looking at.
- Disabled veterans can pay much less. A 100% rating removes property tax on your homestead, and lower ratings get an exemption off the home’s value. See Texas disabled veteran property tax exemptions. Veterans who receive VA disability pay at any rating also skip the VA funding fee.
- A Texas Vet loan may lower your rate. The Veterans Land Board offers its own rates, with a lower rate for veterans rated 30% or more. See Texas Vet loans, then try that rate in the calculator.
How the calculator works
For renting, it adds up every rent payment, rising each year by the increase you enter. For owning, it adds up everything you pay (closing costs, principal and interest, property tax, insurance, HOA dues and upkeep) and subtracts what you’d walk away with if you sold that year: the home’s value, minus selling costs, minus what you still owe. The VA funding fee is added to the loan, unless you’re exempt. The year owning’s total drops below renting’s is your break-even year.
It’s an estimate. Home values and rents can fall as well as rise, and the calculator doesn’t include tax deductions, a future refinance, or what a renter might earn investing any monthly difference. For your real payment, try the VA home loan calculator, or talk with my team.
Common questions
Is it really better to buy than rent?
Over a long enough stay, it usually is, because your payment builds equity and a fixed rate keeps principal and interest from rising while rent does. Over a short stay, the costs of buying and selling can make renting cheaper. The calculator shows the year owning pulls ahead with your own numbers.
How long do I need to stay for buying to make sense?
That’s the break-even year in the calculator. It depends on the price, your rate, Texas property tax and how fast rents and home values rise. With a VA loan there’s no down payment to earn back, which helps it come sooner.
Should I wait for rates to drop before I buy?
You can only buy a given home at today’s price, but the rate isn’t locked in forever. If rates fall later, a VA streamline refinance (IRRRL) may let you lower your rate. Waiting keeps you paying rent, and prices may keep rising. Use the “what waiting could cost” section to see it in dollars. Future rates and prices can’t be predicted.
Do I need a down payment or a minimum credit score?
VA loans let you buy with $0 down. My team has no minimum credit score on VA purchase loans; we look at your payment history and qualify you on residual income first.
Does my VA disability rating change the result?
It can, a lot. Veterans who receive VA disability compensation don’t pay the VA funding fee, and a 100% rating (or being paid at 100% for unemployability) removes property tax on your Texas homestead. Pick those options in the calculator to see the difference.
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