Five years have passed and Jamie Lee, 34, is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lee's cupcake caf is a success! It has been open for over a year now and has earned itself rave reviews in the local press and from its regular customers who just cannot get enough of her delicious varieties of cupcakes. One such customer, who stopped by on a whim in the caf's first week of business, is Ross. After a whirlwind courtship, Ross, a self-employed web designer, proposed, and Jamie Lee agreed to be his wife. The bungalow that Jamie Lee has been renting for the past five years is too small for the soon-to-be newlyweds, so Jamie Lee and Ross have found a brand new three-bedroom, 2 bath home in a quiet neighborhood for $280,000. Their neighborhood's homeowner's association dues would be $468.00 a year. After paying a year's worth of house payments, their equity will be $3,900. Based on Jamie Lee and Ross' income, they fall into a 20% tax rate bracket.

Five years have passed and Jamie Lee, 34 is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to putchase a new home Jamie Lee's cupcake caf is a success! It has been open for over a year now and has earned itself rave reviews in the local press and from its regular customers who just cannot get enough of her delicious varieties of cupcakes One such customer, who stopped by on Jamie Lee agreed to be his wife. a whim in the cafe's first week of business, is Ross. After a whirlwind courtship. Ross a self-employed web designer, proposed and The bungalow that Jomie Lee has been renting for the past five years is too small for the soon to be newlyweds so Jamie Lee and Ross have found a brand new three-bedroom 2 bath home in a quiet neighborhood for $280,000 Their neighborhood's homeowner's association dues would be $46000 a year. After paying a year's worth of house payments, their equity will be $3.900 Based on Jamie Leo and Ross income, they fall into a 20% tax rate bracket. Use this payment information along with the information below to compare the costs of renting and buying a house Purtytent for a houne month Rentersecurity deposit Renter's surance yearly Savings account interest rate Mortgage payment National property tax rate Homeowner's insurance payment monthly Maintenance and report of home va Interestist on downy closing costs Mortgage interested in first veat Estimated annual porto 5200 580 104 5132374 1163 5650 583.000 $2.500 550.00 Rental Costs Monthly rent Annual rental payments (monthly rent x 12) Renter's insurance Interest lost on security deposit (deposit x after-tax savings account interest rate) Total annual cost of renting $6,600.00 80.00 $ 6,680.00 $ 468.00 Buying Costs Annual mortgage payments Property taxes (annual costs) Homeowner's insurance (annual premium) Estimated maintenance and repairs After-tax interest lost because of down payment/closing costs Less: Financial benefits of homeownership Growth in equity Tax savings for mortgage interest (annual mortgage interest x tax rate) Tax savings for property taxes (annual property taxes x tax rate) Estimated annual appreciation Total annual cost of buying $ 2,600.00 $ (2.132.00)