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InputsRentBuy
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Home Purchase InfoInitial Costs$2,500 $379,100
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Home Purchase Price$1,115,000
Recurring Costs
$563,547 $890,167
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How Many Years Do You Plan to Stay?15
Opportunity Costs
$104,441 $344,960
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Net Proceeds
($2,500)($1,155,457)
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Mortgage DetailsTotal Spent$667,988 $458,770 $209,218
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Mortgage Rate3.00%Buying Is Cheaper
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Mortgage Down Payment Percent30.00%
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Mortgage Length in Years30
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Renting Costs
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Monthly Rent$2,500
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Rent Deposit$2,500
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Rent Brokers fee$0
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Renters Insurance Rate1.00%
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Mortgage Overview
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Assumptions About The FutureDown Payment$334,500
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Annual Home Price Appreciation Rate3.00%
Mortgage Amount
$780,500
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Annual Rent Rate Increase3.00%Monthly PITI$4,359
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Annual Nominal Return on Investments3.00%
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Annual Inflation Rate3.00%
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Tax Situation
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Annual Property Tax Rate0.90%$10,035
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Marginal Tax Rate20.00%
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Tax Rate On Investments15.00%
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Capital Gains Deduction$500,000
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Housing Transaction Costs
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Cost of Buying House as Percent of Purchase Price4.00%$44,600
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Cost of Selling House As Percent of Selling Price5.00%$55,750
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Other House Costs
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Renovation Costs As Percentage of Purchase Price 0.25%$2,788
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Maintenance Costs As Percentage of Purchase Price0.25%$2,788
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Insurance Rate As Percentage of Purchase Price0.25%$2,788
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Additional Monthly Utilities Compared to Renting$200
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Common Fee$0
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Percent of Common Fee That Is Deductible0.00%
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Mortgage Starting Information
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Down Payment$334,500
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Financed Loan Value$780,500
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Buying Closing costs$44,600
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Initial Costs$379,100
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Profit/Loss
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Appreciated Home Price$1,737,134
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Closing Cost Expense$86,857
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Mortgage Payoff Expense$476,500
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Gross Profit$622,134
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Capital Gains Tax$18,320
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Recurring Direct Costs
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Mortgage Principal Paid$304,000
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Mortgage Interest Paid$230,649
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Common fee$0
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Property tax$153,791
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Utilities$44,637
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Renovations$51,844
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Maintenance$51,844
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Homeowners Insurance$53,400
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Total Direct Costs of Buying$890,167
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Opportunity Costs
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Down Payment$153,512.66
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Closing Costs$20,468.36
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Mortgage Interest$50,163
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Mortgage Principal$55,653
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Property Tax$28,189
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Maintenance$9,503
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Renovation$9,503
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Insurance$9,788
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Utilities$8,182
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Common Fee$0
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Total Opportunity Costs of Buying$344,960
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