You are currently living alone and paying $500 towards your rent. Choose the scenario in which you would pay the least each month for housing. Assume that there are no additional costs associated with housing other than the sums stated in each scenario. Continue to pay $500 per month to rent the same place.
Move to a new rental place which costs $1,200 per month and split the rent between yourself and two of your friends.
Get a 30-year mortgage to purchase a $140,000 house with an interest rate of 4%, which results in a monthly payment of $668.38.
Get a 15-year mortgage to purchase a $135,000 home with an interest rate of 3%, which results in a monthly payment of $932.29