Let's find out using our new calculators with the following criteria:
|Mike and Jen's Current Rental Scenario||Mike and Jen's Potential Homeownership Scenario|
*These inputs will result in a monthly mortgage payment around $1,400
You ready? With this scenario, Mike and Jen will save $106,513 by buying instead of renting over a seven year period. If they stay in their home for 15 years, they will save $369,155. Thirty years? $1,592,717.
These figures include costs for Primary Mortgage Insurance (known as PMI) that they will have to pay until they reach a 20% loan to value ratio.