GLOSSARY OF TERMS
Estimated
Gross Costs of Buying
Total principal and interest payments over the number of years
that you plan to own your home. Estimated
Increase in Equity
A specified property value increased by a selected rate of appreciation
for a specific number of years. Estimated
Net Costs of Buying
The estimated gross costs of buying minus estimated tax savings
and the estimated increase in equity. Estimated
Tax Savings
The amount of tax a renter would save instead of owning a home
based on property taxes and interest paid. Estimated
Total Costs of Renting
The total current rental payments for the same number of years
you would plan to own a home increased by a yearly rental increase
adjustment. Estimated
Total Savings
The estimated net costs of renting minus the lower net cost
of buying. Investment
Related Savings
The estimated total savings of buying invested at a rate of
8% for the number of years that a borrower would plan to own
a home.
Click here for our complete amortization schedule.
|
