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 café 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 café’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 ½ bath home in a quiet neighborhood for $277,000. Their neighborhood’s homeowner’s association dues would be $396.00 a year. After paying a year’s worth of house payments, their equity will be $6,500. Based on Jamie Lee 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.

Rent payment for a house (monthly)	$750
Renter's security deposit	$400
Renter's insurance (yearly)	$75
Savings account interest rate	1.04%
Mortgage payment	$1,292.66
National average property tax rate	1.19%
Homeowner's insurance payment (monthly)	$33
Maintenance and repair (% of home value)	1%
Interest lost on down payment/closing costs	$850
Mortgage interest paid in first year	$12,700
Estimated annual appreciation	$2,300

1) what is the monthly rent

2) what is the annual rental payments (monthly rent x12)

3) what is the renters insurance

4) what is the interest lost on security depostit (deposist x after-tax savings account interest rate)

1) what is the annual morgage payments

2) what are the annual property taxes

3) what is the homeowners insurance

4)what is th estimated maintenacne and repairs

5) what is the after-tax interest lost because of down payment/ closing costs less: financial benefits of homeownership

6) what is the growth in equity

7) what are the tax savings for morgage interest ( annual morgage interest* tax rate)

8) what are the tax savings for property taxes ( annual property taxes * tax rate)

9) what is the estimated annual appreciation