Buy vs Rent - Rent paid over the years
Stop throwing your money away in rent payments and turn your dream into reality…
Purchase your very own home!
Do you realize how much you pay in rent over a period of years? In addition to the monthly payment, you should figure in the amount you would have accumulated had you invested your payments and earned interest on your money. This gives you a total picture of what is happening to your money. The rent you pay adds up to a sizeable amount.
Using the chart below, find your approximate rental payment per month, to determine how much money you are "giving away" in rent and interest over 5, 10, 15, 20, 25 or 30 years; money which could have been used to build equity in your own real estate!
Please note:
The monthly rents and payment totals over the years, do not include yearly rent increases, so the figures would be higher, had the annual rent increases been included.
Total "RENT" Paid over a period of years = Hard-earned money given away!
Simple Math - Horrible Results!
| Monthly Rent | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years | 30 Years |
|---|---|---|---|---|---|---|
| $1,200 | $72,000 | $144,000 | $216,000 | $288,000 | $360,000 | $432,000 |
| $1,400 | $84,000 | $168,000 | $252,000 | $336,000 | $420,000 | $504,000 |
| $1,600 | $96,000 | $192,000 | $288,000 | $384,000 | $480,000 | $576,000 |
| $1,800 | $108,000 | $216,000 | $324,000 | $432,000 | $540,000 | $648,000 |
| $2,000 | $120,000 | $240,000 | $360,000 | $480,000 | $600,000 | $720,000 |
| $2,200 | $132,000 | $264,000 | $396,000 | $528,000 | $660,000 | $792,000 |
| $2,400 | $144,000 | $288,000 | $432,000 | $576,000 | $720,000 | $864,000 |
| $2,600 | $156,000 | $312,000 | $468,000 | $624,000 | $780,000 | $936,000 |
| $2,800 | $168,000 | $336,000 | $504,000 | $672,000 | $840,000 | $1,008,000 |
| $3,000 | $180,000 | $360,000 | $540,000 | $720,000 | $900,000 | $1,080,000 |
| $3,200 | $192,000 | $384,000 | $576,000 | $768,000 | $960,000 | $1,152,000 |
| $3,400 | $204,000 | $408,000 | $612,000 | $816,000 | $1,020,000 | $1,224,000 |
| $3,600 | $216,000 | $432,000 | $648,000 | $864,000 | $1,080,000 | $1,296,000 |
| $3,800 | $228,000 | $456,000 | $684,000 | $912,000 | $1,140,000 | $1,368,000 |
| $4,000 | $240,000 | $480,000 | $720,000 | $960,000 | $1,200,000 | $1,440,000 |
If you were paying your own mortgage on “Your Home” and not your landlord’s home, the total amount of rent paid over the years could have been your home equity that you would have accumulated.
Now, assume you will purchase a home.
| Purchase price | $600,000 |
|---|---|
| Down Payment | $60,000 (10%) |
| Loan Amount | $540,000 |
| Term | 30 Years |
| Interest Rate | 5.875% |
| Mortgage Payment | $3,383.31 |
| Property Taxes | $625.00 |
| Mortgage Insurance (MI) | $189.00 |
| Property Insurance | 150.00 |
| Total Payment | $4,347.31 |
Loan scenario is based on the following parameters:
* Financing type: Conventional
* Interest rate lock period: 30 days
* Interest rate type: Fixed
* Property type: Single Family Residence
* Occupancy type: Primary residence
* Property tax rate: 1.25% of the purchase price
* Interest rate and mortgage insurance is based on a minimum 700 FICO Score
Notes:
1) Mortgage payment includes Principal & Interest.
3) Mortgage insurance can be higher or lower, depending on your credit FICO score and the LTV (Loan-to-value).
