The chart below shows a cost comparison for a renter and a homeowner over a seven year period:
• The renter starts out paying $800 per month with annual increases of 5%
• The homeowner purchases a home for $110,000 with a $1,000 monthly mortgage
• After six years, the homeowner's monthly payment is lower than the renter's
• With the tax savings of homeownership, the homeowner's payment is less than
the rental payment after three years