Problem 1: Compare Renting and Buying
| Rental Costs |
|
|
Buying Costs |
|
|
|
| Annual rent |
$ |
7,380 |
Annual mortgage payments |
$ |
9,800 |
($9,575 is interest) |
| Insurance |
$ |
145 |
Property taxes |
$ |
1,780 |
|
| Security deposit |
$ |
650 |
Insurance/maintenance |
$ |
1,050 |
|
|
|
|
Down payment/closing costs |
$ |
4,500 |
|
|
|
|
Growth in equity |
$ |
225 |
|
|
|
|
Estimated annual appreciation |
$ |
1,700 |
|