Question: For this project, I'm supposed to look at financing a home on a standard "FHA" loan. The 30 loan amount is $250,000, and the interest rate is 3.75%, making the payment $1,158. After adding a monthly property tax payment of $178 and a Home Owner's Insurance payment of $125, the monthly payment becomes $1461. Initial Costs include a down payment of $8,750, closing costs totallying $5,000, and moving costs of $500. Also, they recommend that $5,000 be put into savings for any urgent repairs. Compairing this to renting a home at $1,500 per month, (to increase by $50 per year) Examine the Time Value of Money in this situation, including Present worth, EAW, IRR, and MARR.
To be honest, I'm having trouble looking at any of the TVM methods. Can anyone help?