Rent or Buy Decision Calculator with Tax Credit Information
Effective 11/6/2009 through 4/30/2010
On-Line Spreadsheet to help people decide if they should rent or own their Minnesota housing.
Input Your Assumptions in Yellow Fields
Increasing Value Benefit
1
How Many Years will you own?
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
First Year's Appreciation
2
Purchase Price
First Year's Monthly Appreciation
3
Estimated % Value Change (+ -)
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
4
Percentage - Down Payment in Cash
3%
4%
5%
7.50%
10%
15%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Savings on Income Tax Benefit*
5
Lost interest % on your down payment
0%
1%
2%
3%
4%
5%
6%
7%
Deductible Annual Interest*
6
Approx. Closing Costs as % of Mortgage
0%
1%
2%
3%
4%
5%
6%
7%
Deductible Annual Property Taxes*
7
Plus Annual Property Taxes
Deductible Annual Mortgage Insuance*
8
Annual Property Insurance
Total Annual Deductible Amounts*
9
Interest rate
5.50%
5.75%
6.00%
6.25%
6.50%
6.75%
7.00%
7.25%
7.50%
7.75%
8.00%
Multiply by Marginal Tax Bracket*
10
Mortgage Amortization Years
15
20
30
40
First Year's Tax Savings* inc. credit
11
Your Marginal Tax Bracket
10%
15%
25%
28%
33%
35%
13
Home Owner Association Fee (if any)
Paying Down Your Mortgage Loan Benefit
13
What you pay for rent now:
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900
2000
2100
2200
2300
2400
2500
2600
2700
2800
2900
3000
Unpaid Balance after 1 year
14
What was last years rental tax refund?
Principal Reduction after 1 year
15
Mortgage Amount
Monthly Principal Reduction
MONTHLY PAYMENT
Net Monthly Cost of Buying
16
Principal and Interest
Total Monthly Payment
Call us for more personalized information.
We would like to meet with you, give you our new book on purchasing a home, & advise you on whether buying or continuing to rent is your best course of action. Buying is not for everyone!
17
Monthly Tax and Insurance
Less Monthly Appreciation Rate
18
Mortgage Insurance Premium
Less Monthly Principal Reduction
19
Home Owner Association Fee
Less Monthly Tax Savings
20
Total Monthly Payment (PITI + HOA)
Loss of interest earned on down payment
21
Closing Costs amortized over ownership
22
What you pay for rent now:
23
Net Monthly Cost of Renting
Net Monthly Cost of Owning
24
Monthly Adjusted Cost of Renting
(without the tax credit)
25
Annual Cost of Renting instead of Buying
Monthly Adjusted Benefit of Buying
Linda
(952) 931-9008
26
Are you a FIRST TIME homebuyer?
YES
NO
1st year Benefit times Years Owned
Chuck (952) 239-1311
Click Here For Tax Credit Rules
You May Qualify for Income Tax Credit:
Pat (612) 578-1907
Copyright 2009 Chuck & Linda Heubach Used by Permission
* Notes on Taxes:
Tax Laws are complex and these benefits are outlined in only general terms.
Consult your tax
professional on all matters of taxation.
Your State and Local Tax Law may offer additional benefits.
All Calculations are Estimates Only. Your Actual Results Will Vary.
Appreciation and principal reduction are balance sheet benefits.
While these will not help your cash flow, they are
elements of building wealth. Compare Total Monthly Payment to Rent to estimate the cash flow difference.
The browser does not support JavaScript. The calculations will not work. Please access the web page using another browser.