Renting vs. Buying*

PURCHASE: $350,000 Loan$1670 Payment
$365 Property Tax
$100 Insurance
Total Payment = $2135
Income $80,000
-$11,600 Deduction
-$18,375 Mortgage interest & Tax Deduction
-Taxable Income =$50,025
-State Tax 10% Federal Tax 15%
Total Tax = $12,506

Total RENT payment= $1800 Rent
Income $80,000
-$11,600 Deduction
-Taxable Income $68,400
-State Tax 10% Federal Tax 25%
Total Tax $23,940

Tax savings difference for the homeowner = $11,434 annual or $953 monthy
RENTERS PAYMENT: $1800

HOMEOWNERS ACTUAL PAYMENT: $1182

CALCULATOR: https://www.progressivetitle.com/RentBuyCalculator.aspx


*This is a only an estimate. Please consult your tax preparer for exact numbers

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