The price of a house first time buyer 400000you put down 10, Ask an Expert

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The price of a house (first time buyer) $400,000.You put down 10% down and finance the rest 30 yr mortage fixed at 4%.You pay $12,000 real estate taxes and $1,200 insurance,all annually.You currently pay a rent for $2,000 monthly.Suppose the monthly mortage and real estate taxes are tax deductible.You are in a 30% tax bracket. Assume you used to have 6% interest on the down payment.1. project the value of this house 20 yrs from now assuming an annual rate of appreciation of 5% each year. 2. Calculate monthly mortgage 3. Compute the tax benefits of the total deductuibles 4.(midterm final) Do a cost benefit analysis and compute the true cost of the first monthly mortgage adjusted for EVERYTHING. 5. Discuss the finding of part 4.

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Financial Management, Finance

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