Owning Versus Renting
Attention renters! The shelter you rent may very
well be costing you more than the home you could own.
How much is that roof over your head really costing
you?
Owning Versus Renting Can Make A Significant
$$$$$ Difference
In this example, a married couple
decides to own a $250,000 home at 5.5 % interest.
They put 5% down payment. Their combined adjusted
gross income is $60,000 per year. |
| PI | $1,348 |
| Insurance | $135 |
| Taxes | %572 |
| Mortgage Insurance | $118 |
| PITI | $2,173 |
| Purchase Price | $250,000 |
| 5% Down | |
| 5.5% Interest | |
| |
Owning
a Home |
Renting |
The Difference |
| Monthly Expenditure |
$2,173 |
$2,000 |
$173/month |
| Months per year |
12 |
12 |
|
| Yearly Expenditure |
$26,076 |
$24,000 |
|
| Adjusted Gross Income |
$60,000 |
$60,000 |
|
| 2 Individual Exemptions |
$7,300 |
$7,300 |
|
| Interest |
$11,908 |
0 |
|
| Property Taxes |
$6,864 |
0 |
|
| Sales Tax Deduction |
$839 |
0 |
|
| Mortgage Insurance Deduction |
$1,416 |
0 |
|
Medical/Charitable
Deductions |
$1,000 |
0 |
|
| Total or Standard Deduction |
$22,027 |
$11,400 |
|
| Net Taxable Income |
$30,673 |
$41,300 |
|
| Income Tax Owed |
$3,766 |
$5,364 |
$1,598 Savings |
|
