CHHS Student Success Center

Financial Readiness

Buying/Owning:

Total Cost of Owning = Buying/Owning Expenses - Selling Revenue

Buying/Owning Expenses...
~ Down Payment, plus...
~ Buying Closing Costs (est: $4,000), plus...
The following Yearly Costs multiplied by the Years of Ownership:
~ Yearly Mortgage, plus...
~ Yearly Property Tax, plus...
~ Yearly Home Insurance, plus...
~ Yearly Maintenance & Renovations (est: $1,200), plus...
~ Yearly Homeowner's Association Fee, minus...
~ Yearly Mortgage Interest Tax Deduction (interest paid multiplied by your tax bracket)

Selling Revenue...
~ Home Sale Price, minus...
~ Mortgage Amount Remaining, minus...
~ Realtor Fees (est: 6% of sale price), minus...
~ Selling Closing Costs (est: $2,500)

If you own your home and are planning to rent it out, consider the income tax on rental income, cost of property manager (if used), and months when home is not rented.

Renting:

Total Cost of Renting = Renting Expenses - Renting Revenue

Renting Expenses...
The following Yearly Costs multiplied by the Years of Rentership:
~ Yearly Rent, plus...
~ Yearly Renters Insurance (est.: $120 per year)

Renting Revenue...
~ Money that you didn't spend on Down Payment to buy home and the interest earned on that money