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Agent2Agent in Marina : Real Estate Advice

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Mon May 13, 2013
Robert Chomentowski answered:
One thing people often overlook in the rent vs. buy equation is loan amortization. Often people will compare what their PITI minus tax deduction is vs. rent. But with rates this low loan amortization is HUGE. A $500k loan at 3.5% over 5 years, $51,514 of the loan principle is paid down via loan amortization on a 30 year fixed. When you rent, a 5 years you have ZERO paying down of principle. So that $50k needs to go into the rent vs. buy equation. ... more
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