Friday, August 19, 2005

Ditech.com 's Owning vs. Renting Calculator

Check out Ditech's online Owning vs Renting Calculator. Here are some problems that I found with the calculator:

  • It does not count maintenance costs for a house.
  • It counts appreciation of the home, but NOT investment of the monthly savings of renting vs owning. You would earn interest on this amount.
  • It does NOT allow negative appreciation
A faulty calculator from a mortgage lender. Not a surprise.
Posted by David at 7:25 PM

6 comments:

  1. AnonymousAugust 20, 2005 8:35 AM

    I entered data including a large-ish downpayment and the ditech calculator seemed tell me that I was better off investing my downpayment elsewhere.

    ReplyDelete
  2. Cole KennyAugust 20, 2005 1:25 PM

    Not a surprise indeed. But, rare is the person who finds it and points it out! Good job! Cole @ BigHousingBubble.

    ReplyDelete
  3. AnonymousAugust 20, 2005 7:51 PM

    Yeah, mine (see above) was similar, 800k, 30% down, 1600/mo rent, 5.8% interest.

    ReplyDelete
  4. The TimAugust 22, 2005 1:10 PM

    Good find. I know a thing or three about Javascript, so I stole their source code and I'm working on revising it to provide a more complete comparison. Hopefully I'll have something worth looking at within a week on Seattle Bubble.

    ReplyDelete
  5. DavidAugust 22, 2005 9:43 PM

    the tim,

    cool. Great idea. :-)

    ReplyDelete
  6. AnonymousOctober 22, 2007 1:24 AM

    where can i get more review on ditech ? i want to see some complaints that they had recently

    ReplyDelete

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