Renting vs Buying ~ what's best for you asks a Lombard Mortgage Lender

By
Mortgage and Lending with Draper and Kramer NMLS# 189006

You will save more money when you buy a homePurchasing 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!                                                                                                         Throwing away money

 

 

 

 

 

picture courtesy of flickr

Comments (4)

Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL
Great Info for first time home buyers!  Real Estate is a great investment - some people just don't realize how easy it can be to own their own home vs. renting.  They need to call YOU Kim---you're the professional and will walk them through the steps!!
Jul 07, 2007 11:50 PM
Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing
I always love numbers.
Jul 08, 2007 03:23 PM
Allan Pape
Austin, TX

Well done Kim! There are only a couple of things that jump to my mind...$3k only growing to $34k over 30 years???  What interest rate is that at?  It could be much more than that....though still not nearly what you would have as a homeowner.

Then the other thing would be to take your homeownership scenario a step further and show what their net woth would be with their property as well as maybe paying a little less towards principle and investing it at a good rate of return allowing them to see their options and what is really available to them.  There's a world of possibilities, we just have to open our clients eyes to them.  :)

Jul 11, 2007 03:34 AM
Kim Murphy
Draper and Kramer - Lombard, IL
Mortgage Loans in DuPage, Kane, Cook, Lake, Will C
Allen...  Showing how the money could be invested is also another great idea. Thanks for stopping by!
Jul 13, 2007 01:48 PM