Carolyn and Jim are moving to Montanta, for an expected stay of one year. They have 2 children and want to live in a house. They find a nice home which they can either rent or buy.
The landlord is offering a one-lease of $1,050 per month. Renters Ins is $45 per month.
There is a loan fee 2 points (2%) and other closing cost of $1500. They will be added to the mortgage loan.
The amount to be borrowed will be financed at 4.45% compounded monthly over 30 years.
Purchage price is $175,000 with a down payment of 5%.
Property tax on the home is $1,150 per year, fire & home owers Ins comes to $550 per year and repairs will cost $800 per year.
The income tax rate is 25%.
Assume that they sell the house after one year for $180,000 & pay a real extate fee of 6% on the selling price.
When They sell the home they also pay closing of $1500.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.