Rent vs buy: what every calculator input means and how to set it
A plain-English guide to rent-vs-buy calculator inputs — price, rent growth, appreciation, time horizon, selling costs — and how to set them honestly.
Guides tagged First-time buyers
4 guides · all guides
The VA funding fee explained: rates, examples and who is exempt
Current VA funding fee rates by down payment and first or subsequent use, worked examples on a $400,000 home, exemptions and financing the fee.
Debt-to-income ratio: front-end vs back-end, with worked examples
What front-end and back-end DTI measure, how lenders use them, a worked example on $8,000 a month, and how to lower DTI before applying.
FHA vs conventional: how MIP and PMI change the monthly payment
How FHA mortgage insurance (MIP) and conventional PMI are calculated, a side-by-side payment example on a $350,000 home, and when each wins.
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Q.01How many years do I need to stay for buying to beat renting?
It depends on prices, rents and costs in your market, but short horizons usually favour renting because buying and selling costs have to be recovered. Run the calculator with your expected stay and a shorter and longer alternative.
Q.02How much is the VA funding fee for a first-time user with no down payment?
2.15% of the loan amount. On a $400,000 purchase with no down payment that is $8,600.
Q.03What is a good debt-to-income ratio for a mortgage?
Lenders like to see a back-end DTI of 36% or less, and 43% is a common guideline ceiling. Some programs and automated underwriting approvals allow higher ratios with strong compensating factors such as reserves or credit.
Q.04Is FHA MIP more expensive than PMI?
It depends on credit. For borrowers with strong credit, conventional PMI is often cheaper and can be removed sooner. For lower credit scores, PMI pricing rises steeply while FHA MIP stays the same, so FHA can be cheaper.
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