Ultimate Buy vs Rent Calculator – Considering Long Term Wealth Building

Ultimate Buy vs Rent Calculator – Considering Long Term Wealth Building

INSTRUCTIONS: Use this powerful calculator to estimate the additional wealth you will generate by either buying a home or renting and instead investing your down payment funds in the stock market. If your rent payment is lower than the after tax benefit housing payment for owning, then you can also calculate investing that difference in the market as well. Please complete all fields of this calculator to provide the most accurate results.

Home Buying Information

Has Buyer Used VA Loan Before?
Does Buyer Have VA Disability
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Rental Information

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Homebuyer Loan Information

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Other Assumptions for Buying a Home

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2023 Tax%   Single Filers      Married Filing Joint

12%      $11,000-$44,725     |      $22,000-$89,450

22%     $44,725-$95,375     |      $89,450-$190,750

24%     $95,375-$182,100   |     $190,750-$364,200

32%     $182,100-$231,250 |     $364,200-$462,500

35%     $231,250-$578,125 |      $462,500-$693,750

37%     $578,125 or more    |     $693,750 or more

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Costs Associated with Home Ownership

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This field automatically calculates the PMI as a percentage of your loan amount annually based on credit score and loan to value. The monthly dollar amount of PMI is expressed in the Financial Analysis Section below.

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Other Assumptions for Renting

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If RENT is less than after-tax monthly housing payment, will you invest the difference?
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Home Ownership Monthly Expenses

Please Note: the Total Monthly Payment below auto-populates the data as it is entered.  Be sure to click out of an entry field to ensure it is included in the calculations.

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Financial Analysis – Rent vs Buy

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This is your calculated net proceeds from selling your home after taking into account remaining mortgage loan payoff balance, expenses associated with home ownership (ie HOA dues, insurance, property taxes, and repairs/maintenance) and closing costs associated with buying and selling the home.

This is calculated using your input for annual rate of appreciation and Timeframe for number of years.

This is the future value of investing the down payment and closing costs instead of using for the purchase of a home.  If you answered “yes” to investing the after tax monthly difference between the home ownership payment and monthly rent, then this additional investment is included.

This is calculated using your input for annual rate of return and Timeframe for number of years.

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Get Your Buyers Pre-Qualified

All of the results obtained from this calculator are for informational purposes only and does not constitute legal, tax, or financial advice.  This information derived from this calculator is for illustrative purposes only and does not apply to any specific mortgage loan applicant and cannot be construed as applicable to all mortgage loan applicants.  This calculator is intended to provide generic information and is not an offer to provide mortgage financing to any person or persons.  Please consult with a a qualified tax advisor, CPA, or financial advisor to obtain specific advice pertaining to your situation or a licensed Mortgage Loan Originator in your area, identified by their NMLS ID number about mortgage lending guidelines applicable to you in your State.