You will save more money when you buy a home. Purchasing a home is one of the best and biggest investments you will ever make. Real estate has always been a great investment. In the example below you will see how you can actually save money by purchasing a home.
Compares renting versus buying based on desired monthly spending amount and other factors.
How much you want to spend each month | 1800. |
How much down (invested if renting) | 3000 |
Current Annual Interest Rate | 6.75 |
Length of Loan (Years) | 30 |
Expected Long Term Inflation (%) | 3.5 |
Expected Long Term Investment Return (%) | 8.5 |
Expected Long Term Tax Rate (%) | 28 |
Compares renting versus buying based on desired monthly spending amount and other factors.
Mortgage Analysis
With your monthly payment of 1,800.00 and a 30 Year Loan at 6.75 %
You will have a loan of $ 277,521.63
Adding your Down payment of $ 3,000.00 gives a total house value of $ 280,521.63
After 30 Years you will own a $ 787,366.35 house and have saved 103,733.94 in Income Taxes on Interest Payments of $ 370,478.37
Renting Analysis
Instead we take your down payment and let it grow
After 30 years your $ 3,000.00 has increased to $ 34,674.75
To see what your monthly rental payment looks like vs buying a new home in DuPage, Kane, Lake or Cook Counties contact Kim Murphy ~ 1st Advantage Mortgage.
Dont throw away your money ~ start investing in your future now! 
picture courtesy of flickr
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