Chapter 10 Building Your Own Financial Plan 5. Select the mortgage with the best terms. Compare the cost of buying a hme with these mortgage terms to renting over a three-year period Renting vs. Owning a Home Total over Three Years Cost of Renting Amount Per Year $12,000 100 2,500 $14,600 Per Month Rent Renter's Insurance Opportunity cost of security deposit Total cost of renting $36,000 300 7.500 $43,800 $1,000 Cost of Purchasing Amount Total over Per Year hree Years $77,832 35,000 150,000 6,000 4,500 500 3,000 $276,832 Per Month $2,162 Mortgage payment Down payment Opportunity cost of down payment Property taxes Home insurance Closing costs Maintenance costs Total costs before tax benefits Tax savings on $25,944 35,000 50,000 2,000 1,500 500 1,000 $1,293 6,000 640 $7,933 $8,000 1,500 $9,500 $259,399 Interest payments 2,000 640 Property taxes Points (first year only) Total tax savings Equity investment Increase in home value Value of equity Cost of purchasing home over three years