Buying a home has long been the American dream. There are various reasons people choose to buy their first home. In most cases, buying a home is a valuable investment and opportunity for financial growth. Many times the question arises, “Should I continue to rent or buy a home?”

The chart below shows a cost comparison for a renter and a homeowner over a 7 year period.

The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000.