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.