Buy Now vs Wait.
The wait-or-buy decision, with the rent you'll pay during the wait counted honestly. Run both scenarios under your own assumptions for prices and rates.
"Wait for rates to drop" ignores the rent you'll pay during the wait.
The wait-or-buy decision is rarely as one-sided as headline-rate framing suggests. A 75-basis-point rate drop sounds decisive — until you account for 12 months of rent during the wait, plus whatever the home does in price.
What's in the comparison
- Buy now: price today × monthly P&I at today's rate, summed over your hold period, plus down payment paid today.
- Wait 12 months: price 12 months from now × monthly P&I at the future rate, summed over the same hold period — plus 12 months of rent paid during the wait, plus down payment paid then.
What's not in the comparison
This calculator focuses on financing. Property tax, insurance, HOA, and maintenance are very similar in both scenarios — same home, eventually — so they cancel from the math. The simplification is intentional: it isolates the variables that actually differ between buying now and waiting.
The break-even rate move
For a typical $475K home with $2,400 rent, the break-even is roughly: each $100 of monthly rent during the wait justifies about a 0.10–0.15 percentage-point rate drop. So $2,400 of rent for 12 months ($28,800) justifies needing a rate drop of roughly 2.5–3 percentage points to come out ahead — much larger than most "rates will drop" arguments imply.
When waiting actually wins
- You expect a substantial price decline (5%+ in your local market within 12 months).
- You can rent very cheaply (well below market) during the wait — staying with family, room-mating temporarily.
- You expect a substantial rate drop (1.5+ percentage points) and current rent is meaningfully below the True Monthly Cost of buying now.
- You're not yet in a financial position to buy comfortably — waiting is structurally about saving more, not timing.
When buying now is the right call
- You've found the right home and your hold period is long (5+ years). Hold length compounds; small near-term moves wash out.
- Rent is at or above the True Monthly Cost of comparable purchase. Renting at par with buying loses to buying over any meaningful hold.
- Your forecast for rates and prices is "I have no idea." Don't optimize against a forecast you don't believe.
Common questions about buy now vs wait.
Does this calculator account for home appreciation?
Why does rent during the wait matter so much?
Should I include the opportunity cost on my down payment in either scenario?
What if my rent is going up during the wait?
Why doesn't this account for HOA or property tax?
How do I model a buydown or temporary rate?
Related calculators.
Pair this with the long-horizon Rent vs Buy.
Buy Now vs Wait covers the 12-month decision. Rent vs Buy covers the multi-year decision. Both are useful; together they answer most timing questions.