| THE REAL COST OF HOME OWNERSHIP |
| Prepared by Gregory T. Joyner |
| of KELLER WILLIAMS REALTY |
|
| PREPARED FOR OUR CLIENTS |
| SALE PRICE | = $250,0000 | | INITIAL INVESTMENT | = $12,500 |
| LOAN AMOUNT | = $237,500 | | INTEREST RATE | = 8.5 % PER ANNUM |
|
| MONTHLY PAYMENTS |
| 1. | Monthly investment for principal & interest | $ | 1826.17 |
| 2. | Monthly mortgage insurance | $ | 98.96 |
| 3. | Monthly taxes (annual taxes : 12) | $ | 250.00 |
| 4. | Monthly insurance | $ | 42.00 |
| 5. | Monthly homeowners association fee | $ | 0.00 |
| 6. | TOTAL MONTHLY CASH PAYMENT | $ | 2217.13 |
| |
| DEDUCTIBLE ITEMS FOR INCOME TAX PURPOSES |
| 7. | Monthly interest (loan amount x int. rate /12) | $ | 1682.29 |
| 8. | Monthly taxes (line 3) | $ | 250.00 |
| 9. | Total Deductions (line 7 + 8) | $ | 1932.29 |
| 10. | CASH SAVED MONTHLY (33% tax bracket x line 9) | $ | 637.66 |
| 11. | Total monthly investment (line 6) | $ | 2217.13 |
| 12. | Income tax deduction (line 10) | $ | 637.66 |
| 13. | ACTUAL AFTER TAX PAYMENT (line 11 - 12) | $ | 1579.47 |
| 14. | Monthly equity build-up (line 1 - 7) | $ | 143.88 |
| |
| 15. | ACTUAL AFTER TAX MONTHLY COST (line 13 - 14) | $ | 1435.59 |
| |
| 16. | *Inflation/Appreciation Factor 5% (sales price x .05 / 12) | $ | 1041.67 |
| |
| 17. | REAL MONTHLY COST OF HOME OWNERSHIP (ln 15 - 16) | $ | 393.92 |
| |
| *Inflation/Appreciation Factor is an estimate based on
historical information available and may be adjusted due to
current and actual conditions. Therefore, these figures are
based on estimates only, using the best information available at
this time and/or supplied by the buyer, but are not guaranteed.
San Diego County has had an approximate inflation/appreciation
rate of 14% over the last 100 years. The 5% rate we are using
here is very conservative. |
