Rent vs Buy: Single Filer + USDA Loan

Enter the total price of the home you plan to buy. USDA loans are limited to eligible rural areas and moderate-income borrowers.

Enter the percentage of the purchase price you plan to pay upfront. USDA loans allow 0% down, but you can optionally add a down payment.

Enter the USDA Upfront Guarantee Fee percentage, typically 1% of the loan amount. This fee can be financed into the loan.

Enter the USDA Annual Guarantee Fee percentage, typically 0.35% of the loan balance. It’s paid monthly and decreases as the balance is paid off.

Enter the annual interest rate for your USDA loan. Rates are competitive but can vary based on lender and borrower qualifications.

Enter additional upfront buying costs like closing fees, legal fees, and prepaid expenses.

Enter the annual property tax rate as a percentage of the home price. This is an ongoing homeownership cost based on local rates.

Enter monthly HOA fees, if any. Planned communities or condos may have HOA costs, even in rural areas. Leave at $0 if not applicable.

Enter the estimated monthly cost of maintaining your home, including repairs, landscaping, and other upkeep expenses.

Enter your current monthly rent payment. This will be compared to the cost of owning a home with a USDA loan over time. Rising rent costs impact the long-term cost of renting.

Enter the expected annual increase in your home’s value. Appreciation builds equity and impacts long-term wealth.

Enter your marginal income tax rate. This rate is used to calculate the tax savings from deductible costs like mortgage interest and property taxes. It reflects the tax you pay on each additional dollar of income.

Enter the tax rate for capital gains when selling your home. Single filers get a $250,000 exemption on gains from their primary residence.

Enter the percentage of savings allocated to tax-advantaged accounts like IRA or Roth IRA, which grow tax-free or tax-deferred.