Is buying better than renting

Annual Savings/(Cost) of Owning vs. Renting (Renting Cost less Owning Cost): $ 12,614

Assumptions

Rate of Return on Investments: % Marginal Income Tax Rate (your combined Federal and State tax rate): % Estimated Annual Appreciation of Home:

Down Payment on Home (funds available for down-payment):

Estimated Closing Costs:

Estimated Purchase Price of Home:

Monthly Rent Currently Paying:

Cost of Renting

Annual Rent (Monthly Rent X 12): $

12,000

Renter’s Annual Insurance Premium (if any):

Total Annual Cost of Renting

12,325

Cost of Buying

Mortgage Loan Amount:

122,400

Annual Interest Rate:

Term of Mortgage (in years):

Monthly Mortgage Payment:

761

Annual Mortgage Payment:

9,128

Annual Property Taxes:

Annual Homeowner’s Insurance Premium:

Estimated Annual Maintenance Cost:

Cost of Using Savings (Down Payment + Closing Cost X Investment Rate):

241

Total Cost of Buying

11,869

Less Adjustments

First Year Principal Reduction in Mortgage (increases annually):

560

Income Tax Savings of Interest Deductions Based on Marginal Tax Rate:

3,084

Income Tax Savings of Property Tax Costs:

360

Total Adjustments:

4,004

Annual after-tax Cost of Homeownership (Cost of Buying Less Total Adjustments):

7,865

Your Profit

Estimated First Year Appreciation in Home Value:

8,154

Net Annual Cost of Homeownership (After Tax Cost less Appreciation):

(289)

Annual Savings/(Cost) of Owning vs. Renting (Renting Cost less Owning Cost):

12,614

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