A Closer Look: Home Ownership Analysis Formulas

In Home Ownership Analysis, you enter the interest rate, property price, down payment and amortization years. BORIS calculates the Principal and Interest Paid and the Remaining Loan Balance. Other information is calculated as follows:

Total Payments:

	Principal	$ 283.86
	Interest	$ 4,937.34
	Annual Taxes	$ 900.00
	Annual Insurance	$ 600.00
	Monthly Maint./Repair	$ 540.00
	Total	$ 7,261.20

Income Tax Savings:

	Taxes Paid	$ 900.00
+	Interest	$ 4,937.34
	Total	$ 5,837.34
X	Buyer's Tax Bracket (28 %)	.28
		$ 1,634.46

Property Value Appreciation:

Year One:	Purchase Price	$ 60,000.00
+	Previous Appreciation	$ .00
	Total	$ 60,000.00
X	Annual Property Value Appreciation	.01
		$ 600.00
Year Two:	Purchase Price	$ 60,000.00
+
	Total	$ 60,600.00
X	Annual Property Value Appreciation	.01
		$ 1,206.00

Total Equity:

	New Market Value	$ 60,600.00
-	Remaining Loan Balance	$ 49,716.14
	Total	$ 10,883.86

Net Cost of Ownership:

	Income Tax Savings	$ 1,634.46
	Principal Paid	$ 283.86
+	Appreciation	$ 600.00
	Total	$ 2,518.32
	Total Payments	$ 7,261.20
-		$ 2,518.32
		$ 4,742.88

Average Net Cost per Month:

Year One:	Net Cost of Ownership	$ 4,742.88
+	Number of Months in Period	12
	Total	$ 395.24
Year Ten:	Net Cost of Ownership	$ 4,6707.47
+	Number of Months in Period	120
	Total	$ 389.23

New Market Value:

	Purchase Price	$ 60,000.00
+	Property Value Appreciation	$ 600.00
	Total	$ 60,600.00