Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question. This calculator helps you weed through the fees, taxes, and monthly payments to help you make a good financial decision. Click the “View Report” button for a detailed look at the results.
Price of home
Purchase price of the home you wish to buy.
Cash on hand
Cash you have for the down payment and closing costs.
The current interest rate you can receive on your mortgage.
Term in years
The number of years over which you will repay this loan.
Property tax rate
Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.
Home insurance rate
Your homeowner’s insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner’s insurance.
Loan origination rate
The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000.
The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance.
Other closing costs
Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.
Total closing costs
Total upfront costs to close your loan. This is the sum of the loan origination fee, amount paid for points and other closing costs.
Total for down payment
Total funds remaining for down payment.
Total amount of loan.
Annual percentage return you would receive if you invested your closing costs and down payment instead of purchasing a home.
Monthly rent payment
Amount you currently pay for rent per month.
Income tax rate
Your current marginal income tax rate.
Expected inflation rate
Inflation rate used to adjust amounts subject to annual increases. These amounts include rent, insurance and tax payments.
Home appreciates at
Annual appreciation you expect in the home you are purchasing.
Future sales commission
The percent of your homes selling price you expect to pay to a broker or real estate agent when you sell your home.
Total of principal, interest, taxes and insurance (PITI) paid per month for your home. Insurance includes Principal Mortgage Insurance (PMI) and homeowner’s insurance.
Total of principal paid per month on your mortgage.
The value of the tax deduction you receive on your mortgage’s interest and home’s property taxes. For example, if you have $900 in interest and $100 property taxes per month, the value of the tax deduction would be $280. (At a tax rate of 28%).
Net house payment
Your house payment minus the value of the tax deduction and principal payment.
Net home price
Net selling price of your home after subtracting any sales commissions.
Monthly principal and interest payment.
Monthly cost of Private Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year.