Should I Stay or Should I Go

This week’s inspiration comes from the 1982 hit Should I Stay or Should I Go by The Clash—a fitting question for many people currently weighing whether to continue renting or take the leap into homeownership.

One thing is certain: whether you’re renting or owning, you’re paying a mortgage—just not your own. In fact, the average monthly rent for a three-bedroom apartment in the Metro Atlanta area currently ranges from $2,500 to $3,000. For many, this is equivalent to the monthly mortgage payment on a home priced in the high $300,000s, assuming a 3.5% down payment—depending, of course, on location, property taxes, and other factors.

If you’ve been renting for the past three years, consider these three key questions:

1. How much equity would I have gained over the past 3 years by buying instead of renting?

If you had purchased a home in Metro Atlanta for $380,000 in 2022, your home could now be worth approximately $420,000 or more—an increase in equity of about $40,000.
The average 30-year fixed mortgage rate in 2022 was 5.53%, which is not far from today’s rates. That means for roughly the same monthly payment as rent, you could have built significant wealth simply by making regular payments. It’s hard to beat the idea of earning $40K by doing nothing more than what you’re already doing—paying monthly to live somewhere.

2. What tax benefits did I receive from renting versus buying?

The answer: none. Homeowners, on the other hand, may deduct mortgage interest and property taxes—often leading to meaningful annual tax savings. In many cases, the net cost of a mortgage (after tax benefits) can be less than rent. Of course, individual tax situations vary, so it’s best to consult a tax advisor—but it’s unlikely that renting provides the same financial advantages as homeownership.

3. Can my principal and interest payment on a 30-year fixed mortgage increase?

No. With a fixed-rate mortgage, your principal and interest payments remain stable for the life of the loan—and could decrease if you refinance in the future. In contrast, rent is subject to annual increases, and with current trends, it’s likely to rise significantly over the next several years.

These three simple questions make a compelling case for homeownership over renting. In addition, a variety of programs exist to help reduce or eliminate down payment requirements—especially for first-time homebuyers. Some options may offer no down payment at all.

If you’re considering making the transition from renter to homeowner, consult with a qualified mortgage professional to explore your options and understand what’s possible for your financial situation.