The document is an interactive homeownership calculator from Ginnie Mae that allows users to compare the costs of buying vs renting a home. It provides three examples of calculations with different input values. Even with less than ideal scenarios like only staying 3 years with 0% home appreciation, buying still makes financial sense compared to renting due to tax savings and equity earned over time. The calculator shows that in most housing market conditions, buying a home is likely to provide greater long term savings than continually renting a property.

1. Ginnie Mae: Your Path to Homeownership Page 1 of 1
Buying vs. Renting
Use the calculator below to compare the advantages and considerations of owning vs. renting a home.
Current Rent: $1,300
Purchase Price of Home: $182,941
Percentage of Down Payment: 10%
Length of Loan Term (years): 30
Interest Rate: 3.5%
Years You Plan to Stay in This Home: 10
Yearly Property Tax Rate: 0.5%
Yearly Home Value Appreciation/Depreciation
(use a negative number for depreciation):
2.7% Appreciation estimate based on
treasury yield and inflation.
Refresh Recalculate
Result Returned: Rent Buy
Price of Home After Appreciation or
$238,789
Depreciation:
Remaining Balance After 10 Years: $127,529
Equity Earned: $111,260
Tax Savings (at 28%): $18,696
Avg. Monthly Payment Over Time: $1,446 $105
Total Payment: $173,520 $12,619
Total Savings On: Net worth increase with all the
Buying: $160,901
expenses and cost of home
Note: The calculator above uses these items in its calculations: private mortgage ownership included.....
insurance, homeowner's insurance cost, loan closing cost, cost of selling a home,
property tax, homeowner's tax saving, and rent increases. Calculator results are
estimates only.
NOTE: This calculator is best viewed with a browser such as Internet Explorer, Netscape 6 or greater, or Firefox. Users with other browsers are advised
that they may or may not be able to execute the full functionality of this calculator.
Previous
HOME | ABOUT GINNIE MAE | FOR ISSUERS | FOR INVESTORS
PRIVACY POLICY HOMEOWNERSHIP GUIDE AND CALCULATORS | HOMEZONE (KIDS' SITE)
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH 10/4/2012

2. Ginnie Mae: Your Path to Homeownership Page 1 of 1
Buying vs. Renting
Use the calculator below to compare the advantages and considerations of owning vs. renting a home.
Current Rent: $1,300
Purchase Price of Home: $182,941
Percentage of Down Payment: 10%
Length of Loan Term (years): 30
Interest Rate: 3.5%
Years You Plan to Stay in This Home: 5
Yearly Property Tax Rate: 0.5%
Yearly Home Value Appreciation/Depreciation
(use a negative number for depreciation):
2.7%
Refresh Recalculate
Result Returned: Rent Buy
Price of Home After Appreciation or
$209,008
Depreciation:
Remaining Balance After 5 Years: $147,706
Equity Earned: $61,302
Tax Savings (at 28%): $9,348
Avg. Monthly Payment Over Time: $1,361 $259
Total Payment: $81,660 $15,573
Total Savings On: Buying: $66,087....even after only 5 years, $66k
of additional savings. Imagine if
Note: The calculator above uses these items in its calculations: private mortgage
you invested that savings and
insurance, homeowner's insurance cost, loan closing cost, cost of selling a home,
earned even a minimal 1-2% APY?
property tax, homeowner's tax saving, and rent increases. Calculator results are
estimates only.
NOTE: This calculator is best viewed with a browser such as Internet Explorer, Netscape 6 or greater, or Firefox. Users with other browsers are advised
that they may or may not be able to execute the full functionality of this calculator.
Previous
HOME | ABOUT GINNIE MAE | FOR ISSUERS | FOR INVESTORS
PRIVACY POLICY HOMEOWNERSHIP GUIDE AND CALCULATORS | HOMEZONE (KIDS' SITE)
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH 10/4/2012

3. Ginnie Mae: Your Path to Homeownership Page 1 of 1
Buying vs. Renting
Use the calculator below to compare the advantages and considerations of owning vs. renting a home.
Current Rent: $1,300
Purchase Price of Home: $182,941
Percentage of Down Payment: 3.5% Less down?
Length of Loan Term (years): 30 ZERO appreciation?
Interest Rate: 3.25%
Years You Plan to Stay in This Home: 10
Yearly Property Tax Rate: 0.5%
Yearly Home Value Appreciation/Depreciation
(use a negative number for depreciation):
0%
Refresh Recalculate
Result Returned: Rent Buy
Price of Home After Appreciation or
$182,941
Depreciation:
Remaining Balance After 10 Years: $135,500
Equity Earned: $47,441
Tax Savings (at 28%): $18,625
Avg. Monthly Payment Over Time: $1,446 $537
Total Payment: $173,520 $64,502
Total Savings On: Buying: $109,018 Still makes sense to buy.
Note: The calculator above uses these items in its calculations: private mortgage
insurance, homeowner's insurance cost, loan closing cost, cost of selling a home,
property tax, homeowner's tax saving, and rent increases. Calculator results are
estimates only.
NOTE: This calculator is best viewed with a browser such as Internet Explorer, Netscape 6 or greater, or Firefox. Users with other browsers are advised
that they may or may not be able to execute the full functionality of this calculator.
Previous
HOME | ABOUT GINNIE MAE | FOR ISSUERS | FOR INVESTORS
PRIVACY POLICY HOMEOWNERSHIP GUIDE AND CALCULATORS | HOMEZONE (KIDS' SITE)
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH 10/4/2012

4. Ginnie Mae: Your Path to Homeownership Page 1 of 1
Buying vs. Renting
Use the calculator below to compare the advantages and considerations of owning vs. renting a home.
Current Rent: $1,300
Purchase Price of Home: $182,941
Percentage of Down Payment: 3.5% Less down?
Length of Loan Term (years): 30
Interest Rate: 3.25%
Years You Plan to Stay in This Home: 3 Even less time in the home? Only 3
Yearly Property Tax Rate: 0.5% years...a time frame for someone in
Yearly Home Value Appreciation/Depreciation
0% school or grad school?
(use a negative number for depreciation):
AND 0% appreciation over those 3 yrs?
Refresh Recalculate
Result Returned: Rent Buy
Price of Home After Appreciation or
$182,941
Depreciation:
Remaining Balance After 3 Years: $165,592
Equity Earned: $17,349
Tax Savings (at 28%): $5,587
Avg. Monthly Payment Over Time: $1,330 $788
Total Payment: $47,880 $28,377
Total Savings On: STILL MAKES SENSE TO BUY!
Buying: $19,503
With rates where they are and home
prices where they are, there is literally
Note: The calculator above uses these items in its calculations: private mortgage
insurance, homeowner's insurance cost, loan closing cost, cost of selling a home,
zero reason that someone who can
property tax, homeowner's tax saving, and rent increases. Calculator results are
buy shouldn't buy.
estimates only.
NOTE: This calculator is best viewed with a browser such as Internet Explorer, Netscape 6 or greater, or Firefox. Users with other browsers are advised
that they may or may not be able to execute the full functionality of this calculator.
Previous
HOME | ABOUT GINNIE MAE | FOR ISSUERS | FOR INVESTORS
PRIVACY POLICY HOMEOWNERSHIP GUIDE AND CALCULATORS | HOMEZONE (KIDS' SITE)
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH 10/4/2012