Jasper Liu
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Rent vs. buy

Find the year buying beats renting. This model accounts for equity, appreciation, opportunity cost of your down payment, and rising rents.

Buying scenario
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Renting scenario
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Growth assumptions
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California long-run average: ~4–5% annually.
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If you rent, your down payment stays invested. Use a realistic long-run return (S&P 500 avg: ~7% after inflation).
Break-even point

Net cost over time

Lower = better. Buy line drops as equity builds; rent line rises as rent increases.

Buying Renting
What this model includes
✓Mortgage P&I, property tax, insurance (0.5%), maintenance (1%/yr)
✓2.5% buyer closing costs upfront
✓PMI if down payment < 20%
✓Home equity (appreciation + principal paydown)
✓Renter invests down payment + closing costs at your assumed return
✗Tax deductions (mortgage interest, SALT) — these favor buying

Results are estimates only and do not constitute a loan approval, lending commitment, or rate quote. Interest rates, loan terms, and monthly payments may change based on market conditions, borrower qualifications, and loan program eligibility. Final terms are determined at the time of rate lock and loan approval.

Numbers look right for your situation? I can get you pre-approved and help you find the right loan structure.

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