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Buy vs Rent Calculator Instructions

Overview:

This calculator helps you compare the financial implications of buying a home versus renting over a specified period. It takes into account various factors like home price, mortgage details, rent, and rent increases.

How to Use:

1. Enter Home Price: Enter the total price of the home you are considering buying.

2. Down Payment: Input the amount of money you plan to pay upfront as a down payment. This reduces the mortgage amount.

3. Loan Term: Specify the duration of the mortgage loan in years.

4. Interest Rate: Enter the annual interest rate of the mortgage. This is typically a percentage.

5. Monthly Rent: Input the amount you currently pay for rent or the estimated rent you would pay.

6. Annual Rent Increase: Estimate the percentage increase in rent per year. This accounts for potential rent inflation over time.

7. Years to Compare: Specify the number of years you want to compare the costs of buying versus renting.

8. Calculate: Once all fields are filled, click the "Calculate Buy vs Rent" button.

Result Interpretation:

The calculator will display the total cost of buying and the total cost of renting for the specified duration.

The total cost of buying includes down payment and total mortgage payments over the loan term.

The total cost of renting considers the monthly rent and its annual increase over the years.

Note:

• Ensure all monetary values are entered without commas or non-numeric characters.

• This calculator provides an estimation and should be used as a guide. For a more detailed analysis, consider additional factors like property taxes, maintenance, insurance, and potential changes in housing market conditions.

• The results are based on the information you provide and may vary with different scenarios.

Feel free to use and adjust these instructions to match the context and user interface of your website.