Rent vs Own |
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| Mortgage
Amount $100,000.00 Length of Loan: 30 years Interest Rate: 7.50% Owner’s Tax Bracket of 15% Estimated Annual Appreciation 4.00% |
|
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Annual |
Monthly |
||
First
Year’s Interest |
$
7,468.67 |
$
622.39 |
|
First
Year’s Property Taxes |
$
1,052.63 |
$
87.72 |
|
Tax
Deductible Items |
$
4,721.30 |
$
393.44 |
|
Principal
Reduction |
$
921.85 |
$
76.82 |
|
Homeowner’s
Insurance |
$
368.42 |
$ 30.70 |
|
Private
Mortgage Insurance |
$
500.00 |
$
41.67 |
|
Total Cost of Owning |
$10,311.57 |
$ 859.30 |
|
Monthly
Payment |
$ 859.30 |
||
Less
Tax Savings |
$ 59.02 |
||
Less
Principal Reduction |
$
76.82 |
||
Less
Appreciation |
$
350.88 |
||
Net Cost of Owning |
$ 372.58 |
||
Monthly
Rent for Similar Home |
$
750.00 |
||
Less
Monthly Net Cost of Owning |
$
372.58 |
||
Monthly
Cost of Rent vs. Owning |
$
377.42 |
||
Annual Cost of Renting
vs. Owning |
$ 4,529.00 |
||
| This form is not intended to be a comprehensive analysis, nor is it an offer to extend credit as defined by Section 226.6 of Regulation Z. Its purpose is to assist in making decisions about real estate. While the information contained herein is deemed reliable, no warranty, expressed or implied, is granted. If concerned, parties should seek counsel from their tax or legal advisor. | |||
Rent vs Buy Calculator |
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