Marriage Fell

For rent I found a 3-bed, 2.5 bath 1,840 sqt houses with a garage for $1,495(www.homes for rent in Hopkins)

For purchase I found a 3bed, 2.5 bath 1,840 sqt with a garage asking price $424, (www.homes for sale in Hopkins)

The two are within two mile from each other in similar neighborhoods, and neither is located on a busy road. Assuming the buyer is a married couple with $85,000 in the bank to make a 20% down payment. To calculate the mortgage payment we will use a recent 30 year fixed interest rate of 6.25%

Let's look at how the monthly cost break down (approximately) foe our hypothetical potential first-time homebuyer.

Renting Buying

Rent/Mortgage $1,495 $2093

Insurance $20.00 $163

Property Tax - $407

Tax Saving - $327

Maintenance - $354

Totals $1515 $2690

Now right away you notice renting is cheaper than buying, (that's not exactly cheap) with even a slight upgrade from renting to buying, you can easily see how the total monthly cost has doubled. But you know what they say if your renting your throwing away money. Buying a home is a good investment ''