|
Home
Value $840,000
|
|
50% Rent Credit
|
Vs. |
30 Year 5.5% Fixed Loan |
|
|
|
|
|
|
| Monthly Rent
|
$2,997
|
Loan Payment
|
$4,769.43
|
12
months rent payment =
(12 X's $2,997 = $35,967)
50% Rent Credit
= $1,498.50 for 12 months |
$35,964
$17,982
|
12
months payment =
|
$57,233.16
|
| (12
X's $1,498.50 = $17,982) |
|
(12
X's $4,769.43 = $57,233.16) |
| $840,000 -
$17,982 ='s |
$822,018
|
Principal Pay down
See Amortization Schedule below. *
|
$11,315.58
|
Principal Balance at end of Year one |
$822,018
|
Principal Balance at end of Year one |
$828,684.42
|
Difference $828,684.42 - $822,018
='s $6,666.42
With a 50% rent credit you will have an equity build up of
$6,666.42 more than you would if you were to buy the home outright with a 30
year fixed loan 5.5% interest. (i.e. You would owe $6,666.42 less on your
mortgage at the end of the first year with the 50% rent credit than you
would if you were paying on a 30 year 5.5% fixed rate loan the first
year.)
Plus keep in mind that your rent
payment is only $2,997 per month and your loan payment would be
$4,769.43
| * Amortization Schedule |
| Event |
Amount |
Interest |
Principal |
Balance |
Loan 1 |
$840,000.00 |
$0.00 |
$0.00 |
$840,000.00 |
| Payment1 |
$4,769.43 |
$3,850.00 |
$919.43 |
$839,080.57 |
| Payment2 |
$4,769.43 |
$3,845.79 |
$923.64 |
$838,156.93 |
| Payment3 |
$4,769.43 |
$3,841.55 |
$927.88 |
$837,229.05 |
| Payment4 |
$4,769.43 |
$3,837.30 |
$932.13 |
$836,296.92 |
| Payment5 |
$4,769.43 |
$3,833.03 |
$936.40 |
$835,360.52 |
| Payment6 |
$4,769.43 |
$3,828.74 |
$940.69 |
$834,419.83 |
| Payment7 |
$4,769.43 |
$3,824.42 |
$945.01 |
$833,474.82 |
| Payment8 |
$4,769.43 |
$3,820.09 |
$949.34 |
$832,525.48 |
| Payment9 |
$4,769.43 |
$3,815.74 |
$953.69 |
$831,571.79 |
| Payment10 |
$4,769.43 |
$3,811.37 |
$958.06 |
$830,613.73 |
| Payment11 |
$4,769.43 |
$3,806.98 |
$962.45 |
$829,651.28 |
| Payment12 |
$4,769.43 |
$3,802.57 |
$966.86 |
$828,684.42 |
|
|
|
|
|
|
Total Principal Paid |
$11,315.58 |
|
|
Principal Balance at end of year one |
$828,684.42 |
|
|
|
|
