This is basically a post asking how to interpret the rent vs buy calculators with the new tax law (I'm assuming all these online calculators were made before the law). The calculator I'm using now is the NYTimes one: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

In the past, the calculator seemed to indicate that a 30 year mortgage with as low of a down payment as possible was the way to go, presumably due to tax deductions on mortgage interest and being able to keep the down payment money in stocks.

However, with the new tax laws I'm guessing the calculations will come out different: Our state income tax rate is relatively low but we pay about $20K per year in state tax. With the new law I believe we can only deduct $10K of that. So I think we won't save anything on property tax if we buy a house. We would also need an additional 14K of deductions before it would be worth it to itemize. And if we buy a house of about $450K or less and have 1 kid I'm not sure we'd be passing that $24K mark by much, if at all.

Does anyone know of an updated rent vs buy calculator? And if you were to use the NYTimes one would you check change the "Marginal Tax Rate" to zero given that it seems like we might be going with a standard deduction even if we buy a house?

If you had over twice the amount of a house saved what percent down payment would you put down to buy the house knowing that that money is money you would no longer be able to invest in taxable account index funds?

Also, how did you all find the best mortgage rate? Did you go through a mortgage broker or just go from bank to bank?

I know it's a lot of questions, so thanks in advance!

In the past, the calculator seemed to indicate that a 30 year mortgage with as low of a down payment as possible was the way to go, presumably due to tax deductions on mortgage interest and being able to keep the down payment money in stocks.

However, with the new tax laws I'm guessing the calculations will come out different: Our state income tax rate is relatively low but we pay about $20K per year in state tax. With the new law I believe we can only deduct $10K of that. So I think we won't save anything on property tax if we buy a house. We would also need an additional 14K of deductions before it would be worth it to itemize. And if we buy a house of about $450K or less and have 1 kid I'm not sure we'd be passing that $24K mark by much, if at all.

Does anyone know of an updated rent vs buy calculator? And if you were to use the NYTimes one would you check change the "Marginal Tax Rate" to zero given that it seems like we might be going with a standard deduction even if we buy a house?

If you had over twice the amount of a house saved what percent down payment would you put down to buy the house knowing that that money is money you would no longer be able to invest in taxable account index funds?

Also, how did you all find the best mortgage rate? Did you go through a mortgage broker or just go from bank to bank?

I know it's a lot of questions, so thanks in advance!

## Comment