Team #4 Personal Investing Options-Buying a House Stephen Tran- Organizer Shake Babakhanyan- Techie Paige Lewis- Summarizer

Project Scenarios Scenario One Rent an apartment for five years before buying a house and paying off the mortgage in 30 years Scenario Two Rent an apartment for ten years before buying a house and paying off the mortgage in 25 years

Buyer Description 23 year old engineering graduate Starting salary of $60,000 a year Looking to buy $500,000 house Currently renting a one bedroom apartment for $1000 a month including utilities

Scenario Constants Wants to pay the house off 35 years from now Can afford to save 15% income for down payment

Goal At 7% interest on the mortgage, which is the better option? Is to see if the savings put into the down payment makes the monthly payments possible

Resources Personal experience Market prices from internet sources Textbook Bank representative