POCKET REFERENCE GUIDE — 21
Rent vs. Buy
• Term: 30 years Property Tax: 1.25%
• Interest: 7.5% Property Ins: 0.35%
• Down: 10% Tax bracket: 30%
If your client is currently renting at
$1,250/month, find the comparable home
price, loan and estimated income tax sav-
ings (at 30% tax bracket).
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter term 3 0 T 30.00
Enter interest 7 • 5 ˆ 7.50
Enter down 1 0 d 10.00
Enter tax% 1 • 2 5 t 1.25
Enter insurance%
• 3 5 I 0.35
Tax bracket 3 0 s + 30.00
Enter rent to find comparable
home price 1 2 5 0 s P
221,894.90
Find comparable loan
amount P 199,705.41
Find PITI
payment P 1,692.23
Find annual tax
savings P 5,306.75
Monthly tax
savings P 442.23
Reset tax
bracket 2 8 s + 28.00
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