The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 28% Federal income tax bracket and the 8% state income bracket. The total cash outlay during the first year of ownership will be $23,400 ($1200 principal payments, $22,200 qualified residence interest payments). Determine the initial year after-tax cost of financing the purchase of the home.