# Excel spread sheet solution - Down payment percentage 20.0%...

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Purchase or Rent Analysis Inputs Present Worth Analysis Length of ownership/renting (years) 5 Note: cash inflows are negative values; cash outflows are positive values Personal interest rate (percent) 10.0% Renting Renting Present Worth Deposit (returned at departure) \$1,200 Deposit \$470.65 Monthly payments (first year) \$1,200 Monthly payment (base) \$56,478.44 Monthly rent change each year \$25 Monthly rent change each year \$2,058.54 Renters insurance (monthly) \$35 Renters insurance \$1,647.29 Renting total cost \$60,654.92 Purchase Purchase Present Worth Application/closing fees \$2,000 Application/closing fees \$2,000.00 Purchase price \$150,000 Monthly mortgage payments \$37,575.25
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Unformatted text preview: Down payment percentage 20.0% Down payment \$30,000.00 Loan interest rate (percent) 7.0% Loan length (years) 30 Monthly insurance and tax \$200 Monthly insurance and tax \$9,413.07 Monthly maintenance \$50 Monthly maintenance \$2,353.27 Future selling price \$160,000 Equity in house (\$28,591.65) Sales commission/fees (percent) 7.0% Sales commission/fees \$6,807.23 Owning total cost \$59,557.18 Calculations Monthly mortgage payment \$798.36 Present worth advantage: Mortgage balance at time of sale \$112,957.91 Purchase Home \$1,097.75 A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27...
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## This note was uploaded on 01/24/2012 for the course ECON 421 taught by Professor Balch during the Summer '11 term at USC.

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