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2 pts Assume that you can get an interest-only mortgage with no money down. You are considering to buy a house or to rent an

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2 pts Assume that you can get an interest-only mortgage with no money down. You are considering to buy a house or to rent an apartment. The apartment rents for $840 per month. You estimate the monthly property tax to be $150 and the monthly interest on your interest-only loan to be $700. Your tax rate is 20%. You also have to pay $50 per month in maintenance costs and $100 per month in property insurance if you own. Should you buy the house or rent the apartment based on these numbers, assuming that you cannot make a profit from the sale of the property? (Also, ignore all emotional factors and assume that you can itemize all your deductions.) You should rent because the $840 rent is less than the monthly cost to own. O You are indifferent because the two options cost exactly the same per month. You should buy because the $840 rent is more than the monthly cost to own. O You should buy because buying is financially always the better option

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