Rent Or Buy Mortgage Calculator

• Figure out whether to rent or buy

• Use this tool to do your analysis

• This home loan calculator will show you clearly what the difference can be

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or
it's applicability to your financial situation.  Please consult your own financial advisor.

Rent Or Buy Mortgage Calculator Explained

This rent or buy mortgage calculator allows you to compare renting and owning properties.

For your rent you factor in:

• your current monthly rent

• estimated annual increase in rent

• number of years before you will move

It is important to note that while you can easily figure out the first, the other two are assumptions. While rents generally go up over the long term, in some years they remain the same or go down.

For your potential purchase you need to factor in:

• your down payment

• the rate you could earn on your down payment money if you invested it instead

• your interest rate

• the total number of years in your loan

• your tax rate (remember, you can deduct some or sometimes all of your mortgage interest from your taxes)

• your annual property tax rate

• estimated annual appreciation

• annual cost of maintaining your house

• commission rate when selling the property

As you can see, there are a lot of assumptions here as well. The annual rate of appreciation in the value of a house can change by year and region. In some parts of the country property values may rise substantially, while in other parts of the country prices can remain the same or even decline.

Try to be careful in your assumptions. Past rates of appreciation may not apply anymore.

An important factor in purchasing property is that in many cases the interest is tax deductible. Consult your tax advisor about this.