This chart shows why buying is better

The chart may used as a guideline to compare the cost of home ownership vs. the cost of renting over a 7 year period.

The RED line indicates your future rent payments for the next 7 years if they are currently $500/Mo and increase at only 5% a year.

The GREEN line indicates your future rent payments for the next 7 years if they are currently $500/Mo and increase at only 3% a year.

The BLUE line indicates the monthly after tax. payment ( $514.00) on a 100k house financed at 8% for 30 years. No adjustment is made for your additional benefit of principle.