Wealth Calculator
Stop Renting. Start Building.
Paying your landlord's mortgage builds their wealth, not yours. See exactly how much richer you could be by owning your own home.
Buying Scenario
Renting Scenario
Market Factors
Net worth gap after 5 years
−$43,004
The renter ends up wealthier by $43,004.
Net worth comparison
Invested down payment + cash-flow difference
Home equity after selling costs
Monthly P&I
$2,560
Rent paid (5y)
$155,990
Home value (5y)
$547,494
Why the gap?
Even when renting is cheaper monthly, the renter fights inflation — rents rise every year. The homeowner benefits from leverage: 4% growth applies to the full $450,000 asset, not just the $45,000 they put down.
Assumes 2.1% property tax, 0.5% insurance, 1% maintenance annually, 3% closing costs, 6% selling costs, and a 6% return on the renter's invested cash.
Disclaimer: This estimate is provided for illustrative and informational purposes only based on the scenario provided. Rates and payments assume a FICO® credit score of 780 or higher. This is not a loan approval or a commitment to lend. Interest rates, fees, and terms are subject to change without notice based on market conditions and borrower eligibility. Actual APR and terms may vary based on your credit history, income, assets, and property characteristics.
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Loans by Vai
The "Rent Trap" Explained
While renting offers flexibility, it lacks the three pillars of real estate wealth generation.
Fixed Housing Cost
Rents historically rise 3–5% every year. A fixed-rate mortgage locks in your biggest expense for 30 years — your payment stays flat while your income grows.
Forced Savings
Part of every mortgage payment pays down the loan balance. It's a savings account you're required to contribute to every month.
Asset Leverage
If you put 10% down and the home goes up 5% in value, you just made a 50% return on your cash invested. Renters get 0% return on their monthly check.
Your first home is closer than you think.
You don't need 20% down. Let's look at low-down-payment options that fit your monthly budget.