Thinking about whether to keep renting, buy your first home, upgrade, or stay and remodel? It's not just you! For many Missourians, 2025 is a year of big housing questions. Mortgage rates, rent trends, and life changes all play into the decision, and the “right” answer depends on your budget, timeline, and goals.

As your trusted local bank, Peoples Bank & Trust (PB&T) helps neighbors across our communities compare options with clear numbers and straightforward guidance. This guide breaks down the pros and cons of renting vs. buying, what costs to expect, when a HELOC (home equity line of credit) might beat moving, and how to apply for a mortgage when you’re ready.

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Renting vs. Buying: What’s the Difference?

Renting

  • You sign a lease and pay a monthly rent.
  • You’re not responsible for major repairs, but you also don’t build equity.
  • You typically have more flexibility to move as your lease ends.

Buying

  • You finance a home with a mortgage and make monthly payments that include principal and interest (plus taxes/insurance and sometimes HOA dues).
  • You build equity as you pay down the loan and as the home appreciates.
  • You’re responsible for maintenance and repairs, but you also have freedom to update and customize.

Home Equity & HELOC, in a nutshell

  • Home equity = your home’s value minus what you owe on your mortgage.
  • A HELOC lets you borrow against your equity to fund projects (kitchens, roofs, additions), usually at a lower cost than unsecured credit.
     

Related: What Does It Really Cost to Build a Home?

Key Factors to Consider (Costs, Lifestyle, Timeline)

Before you decide, look at the full picture, not just the rent or mortgage number.

1. Monthly Costs

  • Rent: Base rent + any utilities/parking/pet fees.
  • Own: Mortgage principal and interest + property taxes + homeowners insurance + maintenance + potential HOA dues.

2. Upfront Costs

  • Rent: Security deposit + first month’s rent + application fees.
  • Own: Down payment (doesn’t have to be 20%), closing costs, inspection/appraisals.

3. Timeline

  • Planning to stay 5+ years often tilts toward buying (time to build equity and spread upfront costs).
  • If you might move within 1–3 years, renting may be safer.

4. Lifestyle

  • Want freedom to renovate, garden, add a dog door? Owning wins.
  • Want flexibility to move for work/school? Renting wins.

5. Risk tolerance

  • Ownership brings unexpected repairs (HVAC, roof, water heater).
  • Renting brings rent increases, limited control, and no equity.

Talk Through Options with a Local Financial Advisor

Pros and Cons: Renting vs. Buying

Renting — Pros

  • Lower upfront costs (no down payment)
  • Flexibility to move as life changes
  • No major repair bills (landlord’s responsibility)

Renting — Cons

  • No equity or long-term wealth building
  • Limited control over the space (and no renovations without permission)
  • Rent increases over time and risk of non-renewal

Buying — Pros

  • Equity growth over time (principal paydown + potential appreciation)
  • Freedom to customize (remodels, landscaping, additions)
  • Predictable payments if you lock in a fixed rate (taxes/insurance may change)
  • Possible tax advantages (consult your tax pro)

Buying — Cons

  • Upfront costs (down payment, closing costs, inspections)
  • Maintenance and repairs (budget 1–2% of home value annually)
  • Less flexibility if you need to move quickly

Buying Isn’t as Intimidating as You Think

If you’re picturing a 20% down payment and a mountain of paperwork, take a breath. Many buyers in Missouri purchase with far less than 20% down, and a local lender can help you explore options that fit your budget and timeline.

What surprises many first-time buyers:

  • You may qualify for competitive loan programs with 3–5% down (or different structures depending on eligibility).
  • Preapproval clarifies your price range and strengthens offers.
  • You don’t need to “time the market” perfectly; your personal timeline matters most.

National coverage in 2025 highlights that while monthly ownership costs can exceed rent in many metros, the equity you build by owning is a form of forced savings that can create long-term value, especially beyond a 5- to 7-year horizon.

Learn More About Home Loans

Stay and Improve: When a HELOC Makes More Sense

Love your neighborhood but need more space, updated kitchen, or new roof? If you already own a home, a Home Equity Line of Credit (HELOC) can be a smart, flexible way to finance:

  • Improvements/repairs (kitchens, baths, HVAC, roofing)
  • Additions (finished basements, extra bedrooms)
  • Energy upgrades (windows, insulation, solar prep)

A HELOC lets you tap equity and borrow what you need when you need it, often at lower rates than many personal loans or credit cards. It can be a compelling alternative to selling and buying again, especially if moving would mean higher prices or higher rates.

Read More: Home Equity for Renovations: Smart Ways to Fund Your Next Project

How to Apply for a Mortgage with PB&T (Step-by-Step)

1. Talk to a Local Lender

A quick conversation helps you understand payment ranges and down-payment options.

2. Get Preapproved

We’ll review income, credit, and debts to give you a realistic budget and a preapproval letter sellers trust.

3. Shop Smarter

With your numbers in hand, you’ll focus on homes that truly fit your budget.

4. Choose Your Loan

Fixed vs. adjustable, different terms, our team explains tradeoffs in plain English.

5. Close with Confidence

We keep you updated, answer questions fast, and celebrate the keys-in-hand moment with you.

Prefer to stay put? Ask us about HELOCs and home improvement financing to refresh the home you already love.

Learn More About HELOCs

When Renting Might Be Smarter (for Now)

  • You plan to move within 1–3 years (job, school, family changes).
  • You’re rebuilding savings/credit or paying down higher-interest debt first.
  • You prefer no surprise repair bills and maximum flexibility.
  • Local ownership costs (mortgage + taxes + insurance + maintenance) are above a comparable rent, and you don’t plan to stay long.

When Buying Makes Sense

  • You plan to stay 5+ years (time is your friend for equity and appreciation).
  • You want stability (fixed payments) and control over your space.
  • You’re ready for maintenance responsibilities and have a rainy-day fund.
  • Your budget supports the full cost of ownership (see next section).

Side-by-Side Cost Example (How to Compare)

When you run the numbers, compare apples to apples:

Renting

  • Monthly rent
  • Utilities not included in rent
  • Renters insurance (usually inexpensive)

Buying

  • Mortgage principal and interest
  • Property taxes
  • Homeowners insurance
  • HOA dues (if applicable)


Tip: If the monthly gap between renting and owning is modest, and you’ll stay 5+ years, owning often wins over time thanks to equity growth. If the gap is large and you’re unsure about your timeline, keep renting, save aggressively, and revisit in 6–12 months.

We’re Here to Help (No Pressure, Just Straight Answers)

Whether you’re:

Peoples Bank & Trust is here with local expertise, clear guidance, and lending options that fit your life. Let’s run your numbers together. We’ll show you realistic payment ranges, help you weigh tradeoffs, and map out a plan, so you can move forward with confidence.

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Peoples Bank & Trust Co.
Member FDIC, Equal Housing Lender
NMLS #407724