Owning vs. Renting Fort Atkinson Homes
When you pay rent, you build equity in your landlord’s property. When you pay a mortgage, you build equity in your own property. It’s that simple. What’s more, you can deduct interest from your mortgage and property tax payments on your income tax return.
To help evaluate the financial benefits of home-ownership, we’ve crunched the numbers. The figures shown below represent a typical situation in the Jefferson County.* But the difference is clear home ownership has its benefits.
|
The Costs |
Rent |
Own |
| Sale Price | N/A | $240,000 |
| Down Payment | N/A | $12,000 |
| Closing Costs and Fees | N/A | $0 |
| Property Taxes | N/A | $4,370 |
| Loan Amount | N/A | $228,000 |
| Interest Rate | N/A | 4.5% |
| Annual Insurance Premium | $120 | $360 |
| Tax Bracket | 25% | 25% |
| Annual Appreciation | N/A | 3% |
|
Monthly Payments |
||
| Rent/Monthly Principal & Interest | $950 | $1,155 |
| Monthly Deposit for Taxes | N/A | $364 |
| Monthly Deposit for Insurance | $10 | $30 |
| Private Mortgage Insurance | N/A | $0 |
| Total Monthly Payment | $960 | $1,549 |
| Income Tax Savings | N/A | $374 |
| Monthly Payment After Taxes | $960 | $1,175 |
| Property Appreciation Per Month | $0 | $600 |
| Net Monthly Cost | $960 | $575 |
| Market Value After 1 Year | N/A | $247,200 |
(Figures are only meant to serve as an example and cannot be guaranteed due to varying lenders’ charges, interest rates, personal taxes, property taxes, insurance, and appreciation.)
