Consider the following choices between paying rent and making house payments. Including the amount saved by taking the mortgage interest deduction, determine whether the monthly rent is greater than or less than the monthly house payments during the first year. Assume the person itemizes deductions.

A person is in the 35% tax bracket. The apartment rents for $1700 per month. Her monthly mortgage payments would be$2300, of which an average of $2200 per month goes toward interest during the first year.