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Lease to Own Calculator (6aii)

Who This Calculator is For: Home seller/investors who expect to realize more from the sale
of their home by offering an option to purchase to a hopeful buyer than an immediate sale.

What This Calculator Does:This calculator allows a home seller/investor to find any
combination of option period, option fee, option price and monthly rent that will
generate a specified yield over the option period if the option is exercised.

 

Enter Items 1-9, And Any 2 of Items 10, 11 and 12. Other Items Will Be Calculated.

(DO NOT USE DOLLAR SIGNS ($), COMMAS (,) PLUS SIGNS ( + )
OR PERCENTAGE SIGNS (%) IN ANY INPUT BOXES)

 


  1.  Estimated Property Value  (e.g. 325000)
  2. Current Mortgage Balance  (e.g. 275000)
  3. Interest Rate  (e.g. 4.5)
  4. Monthly Payment (Principal & Interest Only)  (e.g. 1520.06)
  5. Monthly Property Taxes  (e.g. 250)
  6. Monthly Homeowner's Insurance  (e.g. 100)
  7. Other Costs of Ownership (monthly)  (e.g. 325000)
  Must Be Entered Enter Values for Any Two Items
Leave Third Item to be Calculated		 These Items Will be Calculated
  
 Clear Row		  8.  Net Annual
Rate of Return		  9.  Option Period
(in months)		  10.  Option
Fee		  11.  Option
Price		  12.  Monthly
Rent		    Initial Equity    Net Rent    Ending
Mortgage
Balance		    Ending Equity
             
 
The price a home seller/investor believes they could obtain, within a few months, if they placed their house on the market now. The net annual rate of return earned by the home seller/investor from deferring the recovery of the property’s equity while continuing to pay the costs of ownership, assuming the option is exercised. The number of months the prospective buyer has to exercise the purchase option. The non-reimbursable upfront fee paid to the home seller/investor for granting the option. The price at which the option to purchase can be exercised within the option period. The rent paid monthly for the right to occupy the property, due for the entire option period or until the option is exercised, whichever comes first. If you wish to clear the contents of any single row, click on the row number below. Estimated property value less current mortgage balance. Monthly rent paid by renter/buyer less the mortgage payment and less monthly property taxes, homeowners insurance and other costs of ownership. The mortgage balance at the end of
the option period. The option price less the ending mortgage balance plus the future value of the option fee and the future value of the net rent both of which are assumed to earn interest at the mortgage interest rate.