If you think you're ready to own a home, the numbers really do add up. Of course, you'll need to save enough for a down payment (which varies among lenders) and you'll want to make sure that your budget accounts for essentials that you don't have to pay now as a renter, such as homeowner's insurance and real estate taxes. But check out this example showing how a homeowner comes out ahead of a renter.

HOMEOWNER	RENTER
Purchase Price: $200,000	Purchase Price: n/a
Monthly mortgage payment: $1,455	Monthly rent: $1,000
Monthly mortgage payment after two years: $1,455	Monthly rent after two years:   $1,085
Equity after two years: $16,713	Equity after two years: $0
Initial tax savings: $297	Initial tax savings: $0

In just two years, the homeowner in this case made only a 3.5% down payment but built over $16,000 in equity, whereas the renter has nothing to show for two years worth of rent payments. In addition, based on the calculations used to create this example, the homeowner would break even on the one-time costs associated with buying and selling the house, such as closing costs and realtor fees, within just 1.7 years. The tax savings and monthly investment in a home can dramatically increase your net worth over the long term, while making ever-increasing rent payments just builds someone else's wealth.

This example was calculated through Fulton Mortgage Company's Online Mortgage Center. Calculate your own example.