ws_05.2 - 4 Maintenance of price of home 5 After-tax cost...

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RENT-OR-BUY ANALYSIS $ $ $ $ $ $ 1. Annual rental costs (12 ± monthly rental rate of $ _______) 2. Renter’s insurance 3. Opportunity cost of security deposit: $ _____ ± after-tax savings rate ______ Total cost of renting A. COST OF RENTING 1. Annual mortgage payments (Terms: $ _________, _____ months, ____%) (12 ± monthly mortgage payment of $ _____) 2. Property taxes (___% of price of home) 3. Homeowner’s insurance (___% of price of home)
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Unformatted text preview: 4. Maintenance (___% of price of home) 5. After-tax cost of interest on down payment and closing costs ($_________ ± _____% after-tax rate of return) 6. Total costs (sum of lines B.1 through B.5) Less: 7. Principal reduction in loan balance 8. Estimated annual appreciation in value of home (____% of price of home) Total cost of buying B. COST OF BUYING (Purchase Price of Home $__________)...
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