Welcome > Resources > Mortgage Calculators > Should You Rent or Buy? ...

Should You Rent or Buy?

Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question. This calculator helps you weed through the fees, taxes, and monthly payments to help you make a good financial decision. Click the "View Report" button for a detailed look at the results.

Definitions

Price of home

Purchase price of the home you wish to buy.

Cash on hand

Cash you have for the down payment and closing costs.

Interest rate

The current interest rate you can receive on your mortgage.

Term in years

The number of years over which you will repay this loan.

Property tax rate

Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.

Home insurance rate

Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.

Loan origination rate

The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000.

Points paid

The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance.

Other closing costs

Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.

Total closing costs

Total upfront costs to close your loan. This is the sum of the loan origination fee, amount paid for points and other closing costs.

Total for down payment

Total funds remaining for down payment.

Mortgage amount

Total amount of loan.

Investment return

The rate of return you could receive if you invested your closing costs and down payment instead of purchasing a home.

The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2003, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.7% per year. During this period, the highest 12-month return was 64%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Monthly rent payment

Amount you currently pay for rent per month.

Income tax rate

Your current marginal income tax rate.

Expected inflation rate

Inflation rate used to adjust amounts subject to annual increases. These amounts include rent, insurance and tax payments.

Home appreciates at

Annual appreciation you expect in the home you are purchasing.

Future sales commission

The percent of your home's selling price you expect to pay to a broker or real estate agent when you sell your home.

House payment

Total of principal, interest, taxes and insurance (PITI) paid per month for your home. Insurance includes Principal Mortgage Insurance (PMI) and homeowner's insurance.

Principal payment

Total of principal paid per month on your mortgage.

Tax savings

The value of the tax deduction you receive on your mortgage's interest and home's property taxes. For example, if you have $900 in interest and $100 property taxes per month, the value of the tax deduction would be $280. (At a tax rate of 28%).

Net house payment

Your house payment minus the value of the tax deduction and principal payment.

Net home price

Net selling price of your home after subtracting any sales commissions.

Monthly PI

Monthly principal and interest payment.

Monthly PMI

Monthly cost of Private Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year.

The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

"A model of how the Internet can facilitate the process of deciding where to send your children to school" - America's Best School Profiles by The Heritage Foundation California Public, Private and Charter Schools: Compare them using these top-rated, comprehensive reports.   Schools in Temecula and Murrieta

Cosmetic Improvements >Lighting Up the Sale Lighting is an important factor to take into account when you are selling your home. Natural and artificial lighting can create a mood that buyers notice when they walk into your home, so don't overlook this significant factor which can favorably influence a potential buyer. Before your house is shown, walk through each room with an eye to creating a pleasant ambiance through lighting. Accentuate the natural light by keeping curtains open and windows sparkling clean. Arrange your furniture to take advantage of the best view. You may want to install indirect lighting to highlight a vaulted ceiling or to draw attention to indoor plants. Dimmer switches can create simple and inexpensive lighting appeal. Place a lamp and table arrangement in a dark alcove or corner to brighten up the area. See All Tips In The "Cosmetic Improvements" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  What famous writer's home is Rowan Oak? A  Rowan Oak in Oxford, Mississippi, was the home of William Faulkner from 1930 until his death in 1962. See More Real Estate Trivia >

Cori Blount Real Estate Express Services 34119 Keller Court Winchester CA 92596 Main Ofice: 951-200-0248 Assistant: 951-200-0248 Cell: 951-317-5151 Fax: 951-329-3361 Email: CoriBlount@NUMBER1EXPERT.com Cori Blount is the broker /owner of Real Estate Express Services with 18 years of personal sales experience as well as an independent Broker. Having represented a national builder, and having held position as vice president of operations with a national franchise, it is my pleasure to represent both buyers and sellers in the exciting field of real estate here in Southwest Riverside County. With a vast knowledge in all aspects of residential real estate necessary to make YOUR experience successful and equitable it will be my pleasure to be of service to you . www.Temecula4Sale.com is brought to you by Cori Blount NUMBER1EXPERT™ in real estate for Temecula and Murrieta, California Read Cori Blount's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

NUMBER1EXPERT™
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.