Get the Latest Listings Before Anyone Else!
As soon as I list another home for sale, I'll email you. You'll know first.
Find Out More >
Kelly Ellerbrake is one of The Top Selling Real Estate Experts™
Find Out More >
|
Should You Rent or Buy?
Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question. This calculator helps you weed through the fees, taxes, and monthly payments to help you make a good financial decision. Click the "View Report" button for a detailed look at the results.
Definitions
- Price of home
- Purchase price of the home you wish to buy.
- Cash on hand
- Cash you have for the down payment and closing costs.
- Interest rate
- The current interest rate you can receive on your mortgage.
- Term in years
- The number of years over which you will repay this loan.
- Property tax rate
- Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.
- Home insurance rate
- Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.
- Loan origination rate
- The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000.
- Points paid
- The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance.
- Other closing costs
- Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.
- Total closing costs
- Total upfront costs to close your loan. This is the sum of the loan origination fee, amount paid for points and other closing costs.
- Total for down payment
- Total funds remaining for down payment.
- Mortgage amount
- Total amount of loan.
- Investment return
- The rate of return you could receive if you invested your closing costs and down payment instead of purchasing a home.
The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2003, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.7% per year. During this period, the highest 12-month return was 64%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Monthly rent payment
- Amount you currently pay for rent per month.
- Income tax rate
- Your current marginal income tax rate.
- Expected inflation rate
- Inflation rate used to adjust amounts subject to annual increases. These amounts include rent, insurance and tax payments.
- Home appreciates at
- Annual appreciation you expect in the home you are purchasing.
- Future sales commission
- The percent of your home's selling price you expect to pay to a broker or real estate agent when you sell your home.
- House payment
- Total of principal, interest, taxes and insurance (PITI) paid per month for your home. Insurance includes Principal Mortgage Insurance (PMI) and homeowner's insurance.
- Principal payment
- Total of principal paid per month on your mortgage.
- Tax savings
- The value of the tax deduction you receive on your mortgage's interest and home's property taxes. For example, if you have $900 in interest and $100 property taxes per month, the value of the tax deduction would be $280. (At a tax rate of 28%).
- Net house payment
- Your house payment minus the value of the tax deduction and principal payment.
- Net home price
- Net selling price of your home after subtracting any sales commissions.
- Monthly PI
- Monthly principal and interest payment.
- Monthly PMI
- Monthly cost of Private Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year.
The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
Real Estate Tips
Pricing >Strategic Pricing
When you decide to sell your home, your next decision is key to the sale--"How much should I ask?" If you ask too little for your home, you could potentially lose money. Asking too much for your home could cause it to sit on the market for a long time.
Your real estate agent wants to sell your home as soon as possible, for the best price. The agent will use a Competitive Market Analysis to determine the price for your home. The sales professional may advise you to reduce the asking price if buyers fail to surface after a certain period of time on the market.
If you are serious about selling your home, you should take your real estate agent's advice. In case the first price reduction doesn't generate a buyer, another reduction may be necessary. The monetary value of a house is only what someone is willing to pay for it, but if the market analysis is done correctly, you will get the maximum amount--and a timely sale.
|
Real Estate Trivia
| Q |
What is the oldest U.S. capitol in which a state legislature still meets in its original chambers?
|
| A |
New Hampshire's State House |
 See More Real Estate Trivia > |
|
|
Kelly Ellerbrake
RE/MAX Preferred
1668 Windham Way
O'Fallon, IL 62269
Phone: 618-632-0001
Fax: 618-632-7865
Email: kellyellerbrake@NUMBER1EXPERT.com
Kelly Ellerbrake has been a licensed Realtor for 16 years. She has been a member of the Scott Air Force Base and surrounding communities since 1980. As the daughter of a retired Air Force Colonel, she understands relocating! Kelly is a Certified Residential Specialist (CRS) and has helped more than 600 families relocate by assisting and supporting them with her unique buyers and sellers programs! Contact Kelly today to see why she is the area's #1 Real Estate Expert!    
www.KellyEllerbrake.net
is brought to you by Kelly Ellerbrake
NUMBER1EXPERT in real estate for O'Fallon, Scott Air Force Base and Shiloh, Illinois
Read Kelly Ellerbrake's
Privacy Guarantee,
Terms of Service,
and
Free & Without Obligation Pledge
|
NUMBER1EXPERT®
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.
|
- NUMBER1EXPERT 
