Buying Vs. Renting

Its the age old question, Should I buy or should I rent? Everybody's situation is different and unique circumstances may change your needs, but from a financial standpoint, the numbers below speak for themselves.

Current Rent:		$750
	Purchase Price of Home:		$150,000
	Percentage of Down Payment:		0%
	Length of Loan Term (years):		30
	Interest Rate:		6.25%
	Years You Plan to Stay in This Home:		10
	Yearly Property Tax Rate:		2%
	Yearly Home Value Increase Rate:		3.5%

Result Returned:	Rent	Buy
Price of Home After Appreciation:		$211,589
Remaining Balance After 10 Years:		$126,452
Equity Earned:		$85,137
Tax Savings (at 28%):		$34,650
Avg. Monthly Payment Over Time:	$834	$370
Total Payment:	$100,080	$44,468
Total Savings On:	Buying: $55,612

Note: The calculation above uses these items in its result: private mortgage insurance, homeowner's insurance cost, loan closing cost, cost of selling a home, property tax, homeowner's tax saving, and rent increases. Calculation result is only an estimate.

You may be surprised at how much home you can afford for the same amount that you pay in rent. Below you will find some examples of how much home you can buy with an estimated mortgage payment. Once you determine how much home you can afford, visit our Home Search link and look for a home that looks right for you.

HOME PRICE RANGE                  ESTIMATED MORTGAGE PAYMENT
$30,000 - $40,000                           $325.00 - $387.00
$40,000 - $50,000                           $387.00 - $474.00
$50,000 - $60,000                           $474.00 - $566.00
$60,000 - $70,000                           $566.00 - $643.00
$70,000 - $80,000                           $643.00 - $728.00
$80,000 - $90,000                           $728.00 - $782.00
$90,000 - $100,000                         $782.00 - $862.00
$100,000 - $100,000                       $862.00 - $943.00
$110,000 - $120,000                       $943.00 - $1,025.00

Not all persons will qualify for the payment ranges and should contact a mortgage professional to determine actual payment amounts. The payments listed above assume a 6.25% interest rate and tax estimates of 2% of the sales price. The insurance estimates range from annual premiums of $500 to $700 and are adjusted and are adjusted based on purchase price range. Not all persons will qualify for the insurance estimates provided, you should contact an insurance professional to determine your eligibility and exact cost for and Insurance policy. Prices are subject to change.

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