|
Rent vs. Buy comparison |
|
Rent |
|
Buy |
|
cash needed to move in |
|
|
first Month's rent (due upfront) |
$ 800
|
|
earnest Money |
$500 |
|
last month's rent (due upfront) |
$ 800
|
|
first month's
mortgage
(due at least 30 days after closing) |
$ - |
|
security deposit |
$ 400
|
|
closing costs (builder will pay up
to $4,000 if buyer finances through
HMR) |
$ - |
|
cash needed to move in |
$2,000 |
|
Cash needed to close and move in |
$500 |
|
|
|
|
|
|
|
Maintenance Costs |
|
|
|
|
|
Home Owner's Association Dues |
$ 90 |
|
yard maintenance |
$ - |
|
yard maintenance (included in HOA
dues) |
$ - |
|
water |
$ 35 |
|
water (included in HOA dues) |
$ - |
|
sewer |
$ 23 |
|
sewer (included in HOA dues |
$ - |
|
trash/recycling |
$ 12 |
|
trash/recycling (included in HOA
dues) |
$ - |
|
Maintenance costs |
$ 69 |
|
Maintenance costs |
$ 90 |
|
|
|
|
|
|
|
Monthly
costs
(when averaged
at year end) |
|
|
monthly rent |
$ 800
|
|
monthly payment (PIT)*** |
$969 |
|
tax savings |
$ - |
|
tax savings (at 28%) |
$198 |
|
real cost of renting/month* |
$ 869
|
|
real cost of owning/month* |
$861 |
|
*no tax savings |
|
|
*after year end savings in taxes |
|
|
Long Term Savings |
|
|
equity earned |
$ - |
|
appreciation earned (based on 2% per
year) |
$250 |
|
equity earned |
$ - |
|
equity earned (by paying down
mortgage) |
$163 |
|
total savings/month |
$ - |
|
total savings/month** |
$413 |
|
|
|
|
**available at sale or refinance of
home |
|
|
Based on 5.68% IHA IQ Fixed 1st 3
yrs. ***Payment includes principal,
interest and estimated taxes. APR
5.674%. Based on $150,000 sales
price |
