00:01
First we want to calculate the annual cost of renting.
00:03
Emma is currently paying $675 per month.
00:08
So to find our annual cost, we want to multiply our 675 times 12, and that's going to give us 8100.
00:17
And then we also have to add in the $375 for renter's insurance to get that our annual renter's cost is $8 ,475.
00:29
Then we want to calculate our initial costs.
00:32
To do this, we're going to take $10 ,000 plus $4 ,400 to get $14 ,400.
00:40
Then we want to calculate the annual cost associated with owning the townhouse.
00:46
To do this, we are going to add together our property taxes, homeowners insurance, and maintenance costs.
00:53
When we add these together, we're going to get $4 ,375 plus $875 plus $1 ,225 to give us a total of $6 ,475.
01:08
Then we want to calculate our mortgage payments.
01:11
Payments, we can first subtract our down payment from our home price and then use our formula for a fixed mortgage payment.
01:18
We're going to get that our pmt is approximately 989 .74 and then we want to multiply this by 12 to get our annual mortgage payment, which is going to be 11 ,876 .88...