Should You Rent or Buy?
Want to know the "after-tax" net cost of owning a house versus renting?
| Year | Rental Payment | Mortgage Payment | Tax Savings | Principal | Net to Own | Difference |
| Year1 | Rental Payment$12,000 | Mortgage Payment$13,379 | Tax Savings$3,096 | Principal$1,321 | Net to Own$8,962 | Difference($3,038) |
| Year3 | Rental Payment$36,000 | Mortgage Payment$40,136 | Tax Savings$9,207 | Principal$4,255 | Net to Own$26,674 | Difference($9,326) |
| Year6 | Rental Payment$72,000 | Mortgage Payment$80,272 | Tax Savings$18,136 | Principal$9,501 | Net to Own$52,635 | Difference($19,365) |
| Year9 | Rental Payment$108,000 | Mortgage Payment$120,408 | Tax Savings$26,723 | Principal$15,968 | Net to Own$77,717 | Difference($30,283) |
| Year12 | Rental Payment$144,000 | Mortgage Payment$160,544 | Tax Savings$34,888 | Principal$23,943 | Net to Own$101,713 | Difference($42,287) |
| Year15 | Rental Payment$180,000 | Mortgage Payment$200,680 | Tax Savings$42,534 | Principal$33,774 | Net to Own$124,372 | Difference($55,628) |
| Year30 | Rental Payment$360,000 | Mortgage Payment$401,360 | Tax Savings$67,582 | Principal$130,000 | Net to Own$203,778 | Difference($156,222) |
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The product choices and loan terms displayed are examples only and do not constitute an advertisement. Please use the Loan Consultant feature to assist in selecting a loan product that meets your needs or obtain advice from a qualified professional. The results of any loan calculator are not intended to be and should not be considered a decision of, or a commitment to the loan type or amount for which you may qualify. |
