You have recently purchased a new home, that you plan on moving into over the next couple of weeks.

You need to decide what to do with your current home, you could sell it or you could rent it.  

 

You have a mortgage on your existing home valued at 90,000. The interest rate on your loan is 3.5.  The mortgage payment is 650.00 (including taxes/insurance). The current home appraised at 150,000.  Similar homes in the area (3 bedroom, 2 bath, w/ detached garage) are renting at 1,200 a month. 

 

Use TVM calculations to help make the decision on whether you sell the current home or rent it.  Which one brings you the most value within the next five years?