Rent vs Own

   
  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%

 

 

 
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.    
       
 

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