We calculated your break even point by examining how long it would take to create enough equity in your home to exceed the value of investing your cash on hand. We also accounted for differences in your monthly rent and house payments. If your rent payment is less than your net house payment, we add that monthly savings to your investment. If your house payment is less than your rent payment we subtract that amount from your investment. You may notice that on the schedule at the bottom of this report the investment value can be reported as negative. This happens if your house payment is significantly lower than your rent payment. It illustrates that if you continue to rent the extra cost of renting would, in effect, use up your cash on hand. **GRAPH**
Your current monthly rent is MONTHLY_RENT. The expected inflation rate of INFLATION_RATE annually was used to estimate future rent and property taxes. The rate of return use for investments was INVESTMENT_RETURN per year after taxes. **GRAPH**
|Principal and interest||MONTHLY_PI|
|Association dues & maintenance||MAINTENANCE|
|Amount of points paid||POINTS_PAID_AMT|
|Loan origination fee||LOAN_ORIGINATION_AMT|
|Other closing costs||OTHER_CLOSING_COSTS|
To avoid PMI payments, a DOWNPAYMENT_20 down payment is required. This equals 20% of your home's purchase price. The total amount of cash required for a 20% down payment plus closing costs would be CLOSING_CLOSING_COSTS_20.
The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending Dec. 1st, 2015, had an annual compounded rate of return of 7.76%, including reinvestment of dividends. From January 1970 through to Dec. 2015, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.5% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.
|Tax Rate||Married Filing Jointly or Qualified Widow(er)||Single||Head of Household||Married Filing Separately|
|10%||$0 - $18,550||$0 - $9,275||$0 - $13,250||$0 - $9,275|
|15%||$18,550 - $75,300||$9,275 - $37,650||$13,250 - $50,400||$9,275 - $37,650|
|25%||$75,300 - $151,900||$37,650 - $91,150||$50,400 - $130,150||$37,650 - $75,950|
|28%||$151,900 - $231,450||$91,150 - $190,150||$130,150 - $210,800||$75,950 - $115,725|
|33%||$231,450 -$413,350||$190,150 - $413,350||$210,800 - $413,350||$115,725 - $206,675|
|35%||$413,350 -$466,950||$413,350 - $415,050||$413,350 - $441,000||$206,675 - $233,475|
*Caution: Do not use these tax rate schedules to figure 2015 taxes. Use only to figure 2016 estimates. Source: 2015 Rev. Proc. 2015-61
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