Although some renters believe that renting is “maintenance free”, they are actually paying for maintenance in their rent – whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you’re paying rent, you’re really just paying someone else’s mortgage. Writing a check is just like watching your hard earned money sail away. Let’s compare*.

Rent vs. Own

Monthly Payment -  $1,000

Insurance - $30

Taxes - $0

Total Payment - $1,030 

 

Monthly Payment - $855

Taxes - $260

Insurance - $50

MIP Insurance - $45

Total Payment - $1,210


Savings

Interest Deduction - $0

Tax Deduction - $0 

Net Monthly Payment - $1,030

 

Interest Deduction - $175

Tax Deduction - $75

After Tax

Net Monthly Payment - $960


* Approximate Payment/Cost Comparison based on estimated annual tax results. Based on 2.5 tax bracket and on estimated first year interest and taxes. Recommend consulting with tax expert. Payment based on FHA 30-year fixed rate loan with 7% interest rate, sales price of $125,000 and a loan balance of $121,250. Interest rate/rental rates, prices, terms, and availability subject to change without notice. See a qualified tax consultant for more details.