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Find the monthly payment of the mortgage

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Reference no: EM132379949

You are debating whether it is better to buy or rent a house. Here are your options:

  • Buy: Fixed rate mortgage of $200,000 at 3.92% APR for 30 years.
  • Rent: $1,500 a month

Find the monthly payment of the mortgage. How much will you spend on the mortgage after 5 years? How much would you spend on the rental after 5 years?

In your opinion, which is a better decision and why? Consider the pros and cons of owning or renting besides just comparing the two monthly costs.

Reference no: EM132379949

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