Fill in the shaded boxes in this section Hidden facts Principal poriton of payment #VALUE!
What is the purchase price of the house you wish you buy? $ - Use your mouse to scroll over boxes with a Total number of payments:
Do you plan to put any money down on your purchase? If so, how much? $ - red triangle in the upper right corner Initial Interest #VALUE!
What is the interest for the loan you are applying for? (example 7.375): 7.250 for detailed expalantions. Initial Principal #VALUE!
Will the loan be an interest only loan? (Yes / No) Yes Fully amortized payment:
What is the duration of loan in years? (most loans are amortized over 30 years): 30 Interest Only Payment: #VALUE!
How much do you earn each month? (after business expenses if you are self employed): $ - Amount financed: $ -
If you are purchasing this house with someone, how much do they earn each month? $ - 30 year annual appreciation rate: 8.44%
What is your tax filing status (1=Single 2=Married) 2 Loan to value: #DIV/0!
How much do you pay in rent each month?: $ -
How much do you (or should you if you don't) pay in renters insurance each month?: $ - Single W2 Renters Married without Mortgage deductions Married with Mortgage deductions
Federal Income Range Federal Federal Federal Actual Tax Federal Income Range Federal Federal Federal Actual Tax
Gross Taxable Income: $0.00 Income Range Flat Rate Tax Rate Tax Amount Rate Income Range Flat Rate Tax Rate Tax Amount Rate
$0.00 $10,120.00 $0.00 10.0% #VALUE! $0.00 $10,120.00 $0.00 10.0% #DIV/0! #DIV/0!
SUMMARY Personal Deduction: $5,350.00 $10,120.01 $33,520.00 $747.00 15.0% #VALUE! $10,120.01 $33,520.00 $747.00 15.0% #DIV/0! #DIV/0!
This is the additional monthly expense before the tax savings is factored in: $33,520.01 $77,075.00 $4,257.00 25.0% #VALUE! $33,520.01 $77,075.00 $4,257.00 25.0% #DIV/0! #DIV/0!
This is the additional monthly expense after the tax savings is factored in: Net Taxable Income: ($5,350.00) $77,075.01 $162,800.00 $15,145.75 28.0% #VALUE! $77,075.01 $162,800.00 $15,145.75 28.0% #DIV/0! #DIV/0!
This is the 5 year monthly average appreciation if property appreciates at the 30 year average: to live there. $162,800.01 $351,650.00 $39,148.75 33.0% #VALUE! $162,800.01 $351,650.00 $39,148.75 33.0% #DIV/0! #DIV/0!
After factoring in tax savings and appreciation, this is how much extra it costs to continue renting: *That's right! Because your landlord receives the benefit of the appreciation on the $351,650.01 $101,469.25 35.0% #VALUE! $351,650.01 $101,469.25 35.0% #DIV/0! #DIV/0!
property you are renting, it is actually costing you Federal Tax Owed: $0.00
State Tax Owed $0.00
Tax Liability $0.00
Married without Mortgage deductions Married with Mortgage deductions
Single W2 Home owners State Income Range State State State Actual Tax State Income Range State State State Actual Tax
Step #1 Make A List Gross Taxable Income: $0.00 Income Range Flat Rate Tax Rate Tax Amount Rate Income Range Flat Rate Tax Rate Tax Amount Rate
Rent Own Personal Deduction: $5,350.00 $0.00 $6,622.00 $0.00 1.0% #VALUE! $0.00 $6,622.00 $0.00 1.0% #DIV/0! #DIV/0!
Current Rent: $ - $ - Home Deductions: #DIV/0! $6,622.01 $15,698.00 $66.22 2.0% #VALUE! $6,622.01 $15,698.00 $66.22 2.0% #DIV/0! #DIV/0!
Renters Insurance: $ - $ - $15,698.01 $24,776.00 $247.74 4.0% #VALUE! $15,698.01 $24,776.00 $247.74 4.0% #DIV/0! #DIV/0!
Interest Portion of Mortgage Payment: $ - Net Taxable Income: #DIV/0! $24,776.01 $34,394.00 $610.86 6.0% #VALUE! $24,776.01 $34,394.00 $610.86 6.0% #DIV/0! #DIV/0!
Principal Portion of Mortgage Payment: $ - $ - $34,394.01 $43,467.00 $1,187.94 8.0% #VALUE! $34,394.01 $43,467.00 $1,187.94 8.0% #DIV/0! #DIV/0!
Property Taxes: $ - $ - $43,467.01 $999,999.00 $1,913.78 9.3% #VALUE! $43,467.01 $999,999.00 $1,913.78 9.3% #DIV/0! #DIV/0!
Mortgage Insurance: $ - #DIV/0! Federal Tax Owed: #DIV/0! $999,999.01 #VALUE! $999,999.01 #DIV/0! #DIV/0!
Homeowners Insurance: $ - $ - State Tax Owed #DIV/0!
Total: $ - #DIV/0! Tax Liability #DIV/0!
Step #2 Factor In Your Tax Liability
Rent Own Married W2 Renters Married without Mortgage deductions Married with Mortgage deductions
Borrower's Monthly Income: $ - $ - Gross Taxable Income: $0.00 Federal Income Range Federal Federal Federal Actual Tax Federal Income Range Federal Federal Federal Actual Tax
Co-Borrower's Monthly Income: $ - $ - Income Range Flat Rate Tax Rate Tax Amount Rate Income Range Flat Rate Tax Rate Tax Amount Rate
Income Subtotal: $ - $ - Marriage Deduction: $10,700.00 $0.00 $8,000.00 $0.00 0.0% #VALUE! $0.00 $8,000.00 $0.00 0.0% #DIV/0! #DIV/0!
$8,000.01 $23,350.00 $0.00 10.0% #VALUE! $8,000.01 $23,350.00 $0.00 10.0% #DIV/0! #DIV/0!
Estimated Federal Taxes: $ - #DIV/0! Net Taxable Income: ($10,700.00) $23,350.01 $70,700.00 $1,535.00 15.0% #VALUE! $23,350.01 $70,700.00 $1,535.00 15.0% #DIV/0! #DIV/0!
Estimated State Taxes: $ - #DIV/0! $70,700.01 $133,800.00 $8,637.50 25.0% #VALUE! $70,700.01 $133,800.00 $8,637.50 25.0% #DIV/0! #DIV/0!
Total Estimated Tax Liability: $ - #DIV/0! $133,800.01 $203,150.00 $24,412.50 28.0% #VALUE! $133,800.01 $203,150.00 $24,412.50 28.0% #DIV/0! #DIV/0!
This is your annual tax savings after mortgage deductions: #DIV/0! Federal Tax Owed: $0.00 $203,150.01 $357,000.00 $43,830.50 33.0% #VALUE! $203,150.01 $357,000.00 $43,830.50 33.0% #DIV/0! #DIV/0!
State Tax Owed $0.00 $357,000.01 $94,601.00 35.0% #VALUE! $357,000.01 $94,601.00 35.0% #DIV/0! #DIV/0!
Tax Liability $0.00
Step #3 Analyze Cash Flow
Monthly Cost To Purchase the Home: #DIV/0! Married W2 Home Owners Married without Mortgage deductions Married with Mortgage deductions
Monthly Cost To Continue Renting: $ - Gross Taxable Income: $0.00 State Income Range State State State Actual Tax State Income Range State State State Actual Tax
Difference In Monthly Cash Flow Before Factoring Tax Savings: #DIV/0! Marriage Deduction: $10,700.00 Income Range Flat Rate Tax Rate Tax Amount Rate Income Range Flat Rate Tax Rate Tax Amount Rate
Monthly Tax Savings After Mortgage Related Deductions: #DIV/0! Home Deductions: #DIV/0! $0.00 $13,244.00 $0.00 1.0% #VALUE! $0.00 $13,244.00 $0.00 1.0% #DIV/0! #DIV/0!
Actual Increase in Monthly Cash Flow To Own The Home: #DIV/0! $13,244.01 $31,396.00 $63.19 2.0% #VALUE! $13,244.01 $31,396.00 $63.19 2.0% #DIV/0! #DIV/0!
Net Taxable Income: #DIV/0! $31,396.01 $49,552.00 $236.39 4.0% #VALUE! $31,396.01 $49,552.00 $236.39 4.0% #DIV/0! #DIV/0!
$49,552.01 $68,788.00 $582.87 6.0% #VALUE! $49,552.01 $68,788.00 $582.87 6.0% #DIV/0! #DIV/0!
Step #4 Factor in appreciation $68,788.01 $86,934.00 $1,133.55 8.0% #VALUE! $68,788.01 $86,934.00 $1,133.55 8.0% #DIV/0! #DIV/0!
Appreciation Value Federal Tax Owed: #DIV/0! $86,934.01 $999,999.00 $1,826.11 9.3% #VALUE! $86,934.01 $999,999.00 $1,826.11 9.3% #DIV/0! #DIV/0!
Purchase Price of the Home: $ - *California real estate has averaged approximately 8.44% in annual appreciation State Tax Owed #DIV/0! $999,999.01 $90,968.75 9.3% #VALUE! $999,999.01 $90,968.75 9.3% #DIV/0! #DIV/0!
Year 1: $ - $ - over the last 30 years Tax Liability #DIV/0!
Year 2: $ - $ -
Year 3: $ - $ -
Year 4: $ - $ -
Year 5: $ - $ -
Five Year Average Appreciation: $ -
Estimated Increase In Value In Five Years: $ -
Five Year Average Monthly Increase: $ -
Step #5 Analyze investment opportunity
Rent Own
Current Rent: $ - $ -
Renters insurance: $ - $ -
Interest portion of mortgage payment: $ - #VALUE!
Property Taxes: $ - $ -
Mortgage Insurance: $ - #DIV/0!
Homeowners Insurance: $ - $ -
Estimated Tax Savings: $ - #DIV/0!
Estimated Appreciation: $ - $ -
Total: $ - #VALUE!
Disclaimer: The above figures and examples have been
obtained through sources deemed reliable. Before making
any change to your finances, consult your tax professional
and obtain a personalized review of your potential tax
liability. The above illustration does not estimate the federal
alternative minimum tax assessment or an individual's
potential exposure to the alternative minimum tax.
Historical results are not guarantees of future results and
people can and do lose money on real estate investments.
Consult your financial advisor when considering purchasing
real estate.