03/27/2026
Deciding to buy a home is not one size fits all. I recommend working with someone that understands the financial aspects that are associated with owning a home and your finances/goals/plans as a whole picture.
The median existing home price in February 2026 was $398,000.
At today’s average 30 year mortgage rate of 6.22%, a buyer putting 5% down is looking at roughly $2,321 per month in principal and interest alone.
That doesn’t include property taxes, homeowners insurance, PMI, HOA fees, repairs, or maintenance.
Then add closing costs. The CFPB says buyers should typically expect 2% to 5% of the purchase price in closing costs, not including the down payment.
On a $398,000 home, that’s about $7,960 to $19,900 before you even get the keys.
And once you own it, the meter doesn’t stop. CFPB says homeowners also need to budget for taxes, insurance, maintenance, repairs, and other ongoing costs.
Fannie Mae says a common rule of thumb is to budget 1% to 4% of the home’s value per year for maintenance and repairs. On a $398,000 house, that’s roughly $3,980 to $15,920 a year.
So no, renting is NOT automatically “throwing money away.”
SOMETIMES renting is the smarter move because it protects your cash flow, keeps you out of high interest debt, and stops you from buying a house you can’t actually afford to carry.
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The real question isn’t whether a renter “lost” money.
It’s whether buying would’ve improved their net worth after mortgage interest, closing costs, taxes, insurance, and maintenance.
