Renting vs Buying
Where Service is Everything!
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Rent VS Buy
Buy vs. Rent Comparison – Click Here for You Personalized Comparison (http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH ) – Create Hyerlink Tab
The chart below shows a cost comparison for a renter and a homeowner over a seven year period.
- The renter starts out paying $800 per month with annual increases of 5%
- The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
- After 6 years, the homeowner's payment is lower than the renter's monthly payment
- With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years
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Years |
Rent Payment |
Mortgage Payment |
Monthly Difference |
After Tax Savings |
Yearly Difference |
After Tax Savings |
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1 |
800 |
1000 |
-200 |
-50 |
-2400 |
-600 |
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2 |
840 |
1000 |
-160 |
-10 |
-1920 |
-120 |
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3 |
882 |
1000 |
-118 |
+32 |
-1416 |
+384 |
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4 |
926 |
1000 |
-74 |
+76 |
-888 |
+912 |
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5 |
972 |
1000 |
-28 |
+122 |
-336 |
+1464 |
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6 |
1021 |
1000 |
+21 |
+171 |
+252 |
+2052 |
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7 |
1072 |
1000 |
+72 |
+222 |
+864 |
+2664 |
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8-30 |
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Savings increase every year |
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Source: http://www.ginniemae.gov/rent_vs_buy/Rent_vs_buy.asp?subTitle=YPTH
Maryland
Keller Williams Select Realtors
706 Idlewild Ave.
Easton, MD 21601
