What if owning a $700,000 home costs less than you think? See how today's difference could potentially shrink over time while you build ownership.
The ownership illustration assumes a $700,000 purchase, 5% down and the financing/tax assumptions shown below.
Estimated monthly payment: Principal & Interest $4,650 · Property Taxes $729 · Homeowners Insurance $263 · Mortgage Insurance $194
Illustrative potentially deductible first-year housing expenses:
Illustrative total: ~$60,780/year. At an assumed 24% federal income-tax bracket, the estimated benefit used in this example is about $14,600/year, or $1,216/month.*
This illustration assumes rent rises 2.5% annually and, if market rates decline, the homeowner qualifies to refinance after two years from approximately 7.50% to 6.50%.
In this illustration, approximately $35,800 of mortgage principal could be paid down during the first five years. If the home appreciated at an average of 4% annually, a $700,000 home would have an illustrative value of approximately $851,700 after five years.
Includes original down payment, estimated principal reduction and hypothetical appreciation. Appreciation is not guaranteed.
It's also: “What am I getting for my money?”
Rent may continue to rise. A mortgage may potentially be refinanced if rates and your circumstances allow. And while making mortgage payments, you may build ownership in an asset of your own.
Ask us for your personalized Rent vs. Own Analysis.
Mike Meena · 661-714-6258 Free Lifetime Refinance Guarantee — available on qualifying loans.
*Figures are estimates for illustration purposes only and are not a commitment to lend. Rates, loan terms, taxes, insurance, mortgage insurance and payments are subject to change and borrower qualification. Future mortgage rates cannot be predicted or guaranteed. Refinancing is subject to qualification, market conditions, loan terms and any applicable costs. Appreciation is hypothetical and not guaranteed. Tax treatment varies by taxpayer and applicable law; deductions may be limited and generally depend on individual circumstances and whether deductions are itemized. Consult a qualified tax professional regarding your individual situation. This illustration should not be construed as tax or financial advice.
