BUYING vs LEASING A House TEAM: 4 Armin J Bogosian - Techie Aida Beltran - Summarizer Isaac Miranda - Techie Tanya Cardona - Organizer

Introduction  Buyer/Leaser combined household income $90,000  Invests 10% annually  Has liquid assets for down payment  Location: Brea

Scenario 1 - BUY  Condo in Brea  1,300 s.f., 3 bed, 2.5 bath  Purchase Price: $350,000  Down Payment: 20% or $70,000  Interest Rate: 5.75%  Loan Type  FHA  30 year fix  Lender, Bank of America  Annual Property Tax Amount: $4,375  Annual Homeowner’s Insurance: $800  Cash Flow Analysis MONTHLY PAYMENT : $1, W/TAXES & INS: $2,065.24

Scenario 2 - BUY  Condo in Brea  1,300 s.f., 3 bed, 2.5 bath  Purchase Price: $350,000  100% financing with private mortgage insurance  roughly $280 per month  Interest Rate: 5.75%  Loan Type  FHA  30 year fix  Lender, Bank of America  Annual Property Tax Amount: $4,375  Annual Homeowner’s Insurance: $800  Cash Flow Analysis MONTHLY PAYMENT:$2, W/ TAXES, INS, & MIP:$2,753.74

Scenario 3 - LEASE  Apartment located in Brea  1245 s.f., 2 bedroom, 2 bath  $1,000 security deposit  Annual rent increase of 5%  Cash Flow Analysis Monthly rent payment: $2,050