jpinpb, I think right now, you should be able to get 4.5% with about 2 points. That’s about $4500 from a 80% loan w/ purchase price of $285k. That’s still $3500 less than than the $8k the government is giving you to buy. Your example doesn’t work, I agree with that. But the eastlake # sure does. Even if you remove tax deduction out of it, then just add $70/month to my #. Still well below $2200/month. $1155+150+70 = $1375. If you add $200/month for maintenance, that’s still only $1575/month vs $2200/month. Or $1900/month w/ FHA vs $2200/month for rent. But then we can debate whether the P part of P+I should be counted, since that $ doesn’t disappear as long as you sell the property for the same price as you bought for it.
