Puchase Price= $225000.00 |
Interest = 6.0% |
| Down Payment = 10% | Term of Loan = 30 years |
| How long to live here = 5 years | Monthly Rent = $800 |
| Rent Rate Increase = 2.6% | House Appreciation = 4.0% |
Mortgage Info
Down Payment: $22,500.00Mortgage amount after down payment: $202,500.00
Monthly Payment: $1,214.09 (Principal and Interest Only)
Since Principal and Interest are not the only factors of a loan we should include an estimate for PMI, Taxes and Insurance. An average Tax figure for your home tends to be about $10 for every $1000 assessed value. If the assessed value of your home is 85% this would make your home's assessed value $191,250.00, and your monthly tax $159.38. Your down payment was less than 20% of the loan..looks like you're paying PMI. This averages around $56 for every $100,000 borrowed.Your PMI is estimated to be $113.40 per month.
With PMI, Taxes, and Homeowners Insurance ($55 average) your payment would be around $1,541.86.
Over the length of time you indicated (5 years), you would have spent $92,511.89 on mortgage payments. This includes Principal, Interest, Taxes, Insurance and PMI (if applicable). You will pay $58,780.46 in total interest over the 5 years that you live here. Your total taxes paid will be $9,562.50.
Using a 4.0% appreciation rate over 5 years, your house will appreciate to $273,746.90.
Rental Info
The monthly rent includes $25 as an average for renters insurance: $800 + $25.00 = $825.00 for the first year. Rate of increase is also a factor commonly used to determine an estimated increase of rent every year. We will use an average of 2.6% yearly increase. Over the length of time you indicated (5 years), you would have spent $52,061.74 on rent and insurance.Comparison
| Renting | Buying |
| Last Payment Amount: $886.50 | Last Payment Amount: $1,541.86 |
| Total Payments: $52,061.74 over 5 years | Total Payments: $115,011.89 over 5 years (incl. down payment) |
| Tax Savings: $0 | Tax Savings: $24,261.75 (deductions for T and I) |
| Appreciation: $0 | Appreciation & principal: $62,811.83 |
| Total Spent: $52,061.74 | *Total Spent: $27,938.31 |
* Total Spent includes total mortgage paid - (appreciation + principal + tax savings).