Take $710,000 minus $80,000 down payment that you got from a home equity loan. You now have $630,000 financed.
Take $630,000 and multiply it by 5% interest which equals $31,500. This is the interest you pay. Add a little more, (lets say $4000 for principal) which gives you a total payment each year of $35,500.
Divide $35,500 by 12 and it equals a monthly payment of $2958.00.
They are asking $3000 for rent. It just about evens out.
Don’t like my math? Neither do I, but this is the way people think.
