”
$2200-2300 for the mortgage.
$600 property taxes
$150 HOA
$150 insurance
$100 Gardner
Total = $3200-3300.
Tax savings is roughly $700-800/month.
$300/month to principle.
Net costs come out to roughly $2000ish. Rent cost $1800.
so i’m paying an extra $200.
”
Your total Net Cost should be:
Total Gross Cost – Tax Savings =
$3200/3300 – 700/800 = 2400/2600
So compare that to your rent of 1800, I get an extra $600 to 800, that’s much larger than the $200 in your math.
Am I missing something?
Also your tax savings is the highest in the first year, and decreases over the years (because the portion of interest in your overall payment decreases toward 0 over years). So you may be over estimating your tax saving.
