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download the Excel spreadsheet here - Geldpress Powered By Docstoc
					Geldpress freeware rent vs own calculator:
www.geldpress.com

Disclaimer: No guarantees of any kind. Use at your
own risk.

Assumptions
Purchase Price:                                      300,000
Mortgage Interest Rate                                    6.5
Down Payment                                          10,000
Loan Amount                                          290,000
PMI Percentage                                         0.50%
Appreciation per year                                   2.5%
Monthly homeowner dues (fees, maintenance)               250
Monthly homeowner insurance                               50
Yearly fees, maintenance increase                         5%
Property tax rate                                      1.25%
Standard deduction                                      4000
Tax Bracket                                              28%
Selling fees (agent, plus excise)                         8%
Risk free rate (down payment growth)                      3%

                                                                           First 10 years of 30 year Amortization
Year Number                                                1          2            3          4
House Value                                          300,000    307,500      315,188    323,067
~Outstanding Loan (start of year)                    290,000    286,768      283,319    279,640
Mortage                                                1,833      1,833        1,833      1,833
Principal (mid-year)                                     269        287          307        327
Interest (mid-year)                                    1,564      1,546        1,526      1,506
PMI Payment                                              121        119          118        117
Property Taxes                                           313        320          328        337
Homeowner Dues                                           250        263          276        289
Insurance                                                 50         53           55         58
Total Payments                                         2,566      2,588         2,610      2,633
Yearly Tax Deduction(interest, taxes)                 22,514     22,391       22,256     22,108
Useful Deduction                                      18,514     18,391       18,256     18,108
Tax Benefit from Useful Deduction                      5,184      5,150        5,112      5,070
Monthly Tax Benefit from Useful Deduction                432        429          426        423
Effective Monthly Payment                              2,134      2,159         2,184      2,211
Equivalent Rent calculation if sold at end of year
Sale Price                                           307,500    315,188      323,067    331,144
Commission                                             24,600     25,215      25,845     26,492
Net proceeds                                         282,900    289,973      297,222    304,652
Net Profit (Loss)                                    (17,100)   (10,028)      (2,778)    4,652
Taxes (only for first 2 years)                              0          0            0         0
Net Profit after taxes                               (17,100)   (10,028)      (2,778)    4,652
Monthly gain (loss) on profit           (1,425)     (418)      (77)       97
Down payment growth                     10,300    10,609    10,927    11,255
Lost opportunity from down payment         300       609       927     1,255
Lost opportunity per month                  25        25        26        26
Principal recovery at closing            3,232     6,681    10,360    14,286
Per month value of principal recovery      269       278       288       298
Equivalent Monthly Rent                 3,315     2,323     1,999     1,842
ars of 30 year Amortization
                   5          6             7         8         9        10
             331,144    339,422       347,908   356,606   365,521   374,659
             275,714    271,525       267,056   262,287   257,199   251,770   245,978
               1,833      1,833         1,833     1,833     1,833     1,833
                 349        372           397       424       452       483
               1,484      1,461         1,436     1,409     1,381     1,350
                 115          0             0         0         0         0
                 345        354           362       371       381       390
                 304        319           335       352       369       388
                  61         64            67        70        74        78
                2,657         2,569     2,597     2,627     2,657     2,689
               21,946     21,769       21,576    21,365    21,136    20,887
               17,946     17,769       17,576    17,365    17,136    16,887
                5,025      4,975        4,921     4,862     4,798     4,728
                  419        415          410       405       400       394
                2,239         2,155     2,187     2,221     2,257     2,295

             339,422    347,908       356,606   365,521   374,659   384,025
              27,154     27,833        28,528    29,242    29,973    30,722
             312,269    320,075       328,077   336,279   344,686   353,303
             12,269     20,075        28,077    36,279    44,686    53,303
                   0          0             0         0         0         0
             12,269     20,075        28,077    36,279    44,686    53,303
   204      279      334      378      414      444
11,593   11,941   12,299   12,668   13,048   13,439
 1,593    1,941    2,299    2,668    3,048    3,439
    27       27       27       28       28       29
18,475   22,944   27,713   32,801   38,230   44,022
   308      319      330      342      354      367
1,753    1,584    1,551    1,530    1,518    1,512

				
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posted:8/25/2011
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