BUY A HOUSE HOW MUCH HOUSE CAN YOU AFFORD?. GROUP 5 ERICA MCMILLAN- BRADLEY ELLIS – PILAR GONZALEZ.

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Presentation transcript:

BUY A HOUSE HOW MUCH HOUSE CAN YOU AFFORD?

GROUP 5 ERICA MCMILLAN- BRADLEY ELLIS – PILAR GONZALEZ

RESULTS HOUSE PRICE /30 YEARS LOAN  Total mortgage $ 228,600 /monthly $ with 3.47% interest rate  Total mortgage $ 141,210 / monthly $ with 3.5% interest rate  Total mortgage $120,000 monthly $ with 4.0% interest rate

RESULTS HOUSE PRICE/15 YEARS LOAN  MORTGAGE $228,600 / $ MONTHLY PAYMENT / 2.67% INTEREST RATE.  MORTGAGE $141,210 / $ MONTHLY PAYMENT/ 2.75% INTEREST RATE.  MORTGAGE $ 120,000 / $ MONTHLY PAYMENT / 3.00% INTEREST RATE.

HOUSE PRICE / ADD $100.00/15 YEARS  MORTGAGE $228,600 /SAVE $3, FROM THE TOTAL COST  MORTGAGE $ / SAVE $3, FROM THE TOTAL COST  MORTGAGE $120,000 /SAVE $4,000 FROM THE TOTAL COST  PROS  SAVE MONEY  FAST PAYING LOAN  FAST EQUITY

30 YEARS LOAN  PROS  Great option for someone who gets paid minimum wage  Payments will be lower, so it would be good for a tight budget  The extra money can be used to improve and increase the value  CONS  House will have expensive mortgage  No equity soon/minimum 10 years  Twice as many payments to be made  Higher interest to be paid.  Loan will be longer

15 YEARS LOAN  PROS  Great option to pay mortgage fast  Pay less for the total amount of the house  Gain equity fast  CONS  Have to have a permanent higher income to cover other than the mortgage  Emergency may occur and we will have to make drastic changes

CONCLUSIONS Buy vs. renting  Sometimes purchasing a home could be a great investment if you are planning to live in a particular area for at least 10 years in order to make an equity.  To buy includes other expenses like fixing and improving while you are there.  When we rent we don’t have to worry about those things because the apartments are responsible for that.  Renting a home could be more expensive than an apartment because we will be responsible to take care and pay for any damage to the house.  Renting does save you money each month, the mortgage is lower than that of a house

NEW IDEAS  Interesting just how much planning goes into buying/renting a house or apartment  How powerful math is in everyday life  Useful to see different tools and websites  To buy a house or rent we need to find out all the details like taxes, future of the area, how long you will stay there and always refinance in case plans change.