Jeff Shin · Head of Mortgage
NMLS #1041652 · Barrett Financial Group, L.L.C. NMLS #181106

First-Time Buyers · Purchase

Rent vs buy in Chicago using a real PITI, not a national default

You know what rent is this month. The buy number people toss around is usually principal and interest on a national tax default. In Chicago that gap shows up after you offer.

You know what rent is this month. The buy number people toss around is usually principal and interest on a national tax default. In Chicago that gap shows up after you offer.

Run ownership as PITI. Then put it next to rent.

What to put in

Open the Purchase tab → https://www.bankpricer.com/mortgage-calculator/?mode=purchase.

Price. Down payment. A rate already on a quote, or a public stamp from Rate Watch. Do not use a BankPricer rate from this post. There isn’t one.

Taxes from the parcel, not a national default. Insurance. HOA if there is one. Read principal, interest, taxes, and insurance as one monthly number. That is the buy side.

Then rent

Take what you actually send the landlord this month. Not last year’s lease. Not a national median rent chart.

Put that next to PITI. The gap is the number you live with if you buy, or keep if you stay.

How to read it

If buy only looks cheaper because the tax line is a national default, that is the tell. Type a real Cook County style bill and read it again.

If the ownership number only works because you assume you will leave in a year, say that out loud. The payment has to work for the years you stay.

Closing costs, repairs, and a cash cushion after you move are not inside that monthly compare. Keep them in your head when you decide. Do not pretend the calculator covered them.

What this number is not

Not approval. Not a BankPricer quote. Not a reason to upload a Loan Estimate to /leah/ today. That upload is still broken.

Not a market essay. Not a prediction about rates. Not a national rent-vs-buy chart pasted as a Chicago answer.

One thing to do

Open the Purchase tab → https://www.bankpricer.com/mortgage-calculator/?mode=purchase. Type a price and a real tax bill. Put PITI next to the rent you pay. See if buy still works without a national default hiding the tax.

If the gap is why you want a second pair of eyes, talk to Jeff. He originates from Chicago with Barrett Financial Group, L.L.C. NMLS 1041652. Bring both numbers.

Open the Purchase tab

Jeff Shin, NMLS 1041652. Barrett Financial Group, L.L.C. Chicago. Equal Housing Lender. Not a commitment to lend.