Not only does owning a home give you a haven for
yourself and your family, it also makes great financial sense because of the
tax benefits — which you can’t take advantage of when paying rent.
The
following calculation assumes a 28 percent income tax bracket. If your bracket
is higher, your savings will be, too. Based on your current rent, use this
calculation to figure out how much mortgage you can afford.
Rent:
_________________________
Multiplier: x
1.32
Mortgage
payment: _________________________
Because
of tax deductions, you can make a mortgage payment — including taxes and
insurance — that is approximately one-third larger than your current rent
payment and end up with the same amount of income.
For
additional tools, visit our website.
Reprinted
from REALTOR® Magazine (RealtorMag.Realtor.org)
with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright
2008. All rights reserved.