Given the following:
Sale Price $350,000
Marginal Tax Rate 30%
Property Taxes (Monthly) 200
Insurance (Monthly) 50
Cost to Rent an Apt 1,000
Down Payment 20%
Mortgage Interest Rate 7.5%
Amortization Period 30 yrs.
What are the financial implications of renting or buying a home given the above data? Calculate on a monthly basis. (Hint: What is the after tax cost of buying the home compared to renting the apt?)