Alex Guadet of Nashville, TN, has been renting a two-bedroom house for several years. He pays $900 per month in rent for the home and $300 per year in renters insurance. The owner of the house wants to sell it, and Alex is considering making an offer. The owner wants $160,000 (the appraised market value) for the property, but Alex thinks he could get the house for $150,000 and use $25,000 of his investments in mutual funds earning 3% for the down payment. Alex has talked to his banker and could get a 5% mortgage loan for 25 years to finance the remainder of the purchase price. The banker advised Alex that he would reduce the mortgage by $1,700 during

CA3351 Consumer Financial Management 1 Housing Assignment C) Determine whether Alex would be better off buying or renting