Low interest rates could be tempting you into buying a vacation home, or to help one of your kids to go from renting to owning.
But there are so many factors to consider before buying a home. How should you weigh a low mortgage against property taxes, maintenance fees, relator commissions, and your long-term goals?
The New York Times has put together a detailed interactive calculator that crunches the numbers on whether it’s better to buy a home or to keep renting. It takes two dozen factors—from purchase price and length of mortgage to the opportunity cost of making a purchase instead of investing in the market—and boils them down to a single number and a chart.
For instance, someone thinking of purchasing a home that costs $500,000 with a 20% down payment and a 2% mortgage is likely better off buying than renting, the calculator indicates.
Try the calculator here.