If your rent is $1,400/month rent, your annual rent is $16,800. That money is gone. 
Poof! Well, not exactly gone, because your landlord is smiling because, well, you're buying his home for him!
Assume on the other hand that you have a $220,000 home with a $209,000 mortgage. Your monthly payment is about $1,421.70 including P+ I, at 4 percent interest and amortized over 30 years - just what your rent would have cost.
The interest on your loan (4 percent x 200,000) = $8,000 per year. Assuming you're in a 30 percent tax bracket, you have a tax savings of $8,000 x 30 percent = $2,400 per year.
Assume that your home appreciates on average 5 percent a year, a reasonable assumption over time. Thus, in one year your $220,000 home is worth $11,000 more, and is now valued at $231,000.
$11,000 + $16,800 + $2,400 = $30,200.
This is what you paid yourself to own your home - instead of paying for your landlord's home!
Had you rented for five years, your total rent cost would have been $16,800 x 5 = $84,000.
Now, would you rather rent or buy?
Please give me a call at 508-369-5131 to get started on your home search... Today's low interest rates mean you gets lots more house for your money!
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