The Rent vs Own report is a bit different from the others because it shows both the total PITI payment (left side of presentation) and a NET monthly payment. The net monthly payment is actually the total PITI minus the monthly principal paid and the monthly tax benefit. The effective payment comparison shows the total unrecoverable costs on each side. The rent will never be recovered, but the homeowner will retain the principal in the form of equity and will reap the tax benefit.
Articles in this section
- Which fees are contribution style fees that knock down the cash to close?
- 1st Loan 5yr Cost
- How to Read the TCA
- TCA- Annual Appreciation Percentage
- On a Rent vs Own report how is the Net Monthly Payment calculated?
- Can you explain what is showing in the Monthly Payment area, Short Term Savings area and Long Term Area?
- How are the blended rate and blended APR calculated in MC?
- Why isn't the MI populating in my current payment breakdown?