Rent Does Not Build Equity

See How The Rent Piles Up

The chart below shows how the rent you pay each month piles up over time.  You won’t experience any return on this money.  However, when you own a home, the principle you pay on a mortgage builds equity in your investment.

Rent 5 Years 10 Years 20 Years 30 Years
$1200 $72,000 $216,000 $288,000 $432,000
$1600 $96,000 $192,000 $384,000 $576,000
$2000 $120,000 $240,000 $480,000 $720,000
$2400 $144,000 $288,000 $576,000 $864,000
$3000 $180,000 $360,000 $720,000 $1,080,000

Your equity will build slowly, but in the end you have a home of your own.

What are the benefits of home ownership?

We’ve got a great list to get you started in understanding the value of owning a home.

Don’t think you have enough of a down payment?

The State of Texas has programs that will help you with a down payment!


What home price can you afford?

Let’s see how your monthly rent could translate to a mortgage…

A simple calculator like this one at FrogRate lets you plug in some numbers to get an idea of what you would be paying per month for a new home mortgage. Keep in mind that it does not include property taxes and insurance. That is why it is best to speak with a lender.

Add your downpayment amount to the mortgage amount below and you’ll get a great idea of the home you can afford at your current rent amount. Don’t forget that you will get the added benefit of tax savings!

Rent Mortgage Amount
$1350 $170,000
$1500 $200,000
$2300 $300,000
$2200 $368,000
$2900 $400,000

Ready to see what homes you can afford?

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