The American Dream, Right?.   Find a house you like using zillow.comzillow.com  What community?  How many bedrooms?  How many bathrooms?  Dining.

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Presentation transcript:

The American Dream, Right?

  Find a house you like using zillow.comzillow.com  What community?  How many bedrooms?  How many bathrooms?  Dining rooms/living rooms/kitchen?  Exterior composition?  Yard?  Neighborhood Amenities? First Steps

 Down Payment  Assume whatever price you find online is what you will pay  Assume a down payment of 20% (this does not have to be budgeted for in your consumer project, but must be acknowledged in this section)

  The remaining 80% of the purchase price is the total amount of your mortgage  Mortgages are typically 15 or 30 years long  Why might you choose one or the other?  The mortgage is calculated based on “PITI”:  P = Principal  I = Interest  T = Taxes  I = Insurance Mortgage

  Principal is how much you are actually paying off of the original mortgage  Interest is based on your interest rate  Taxes are your property taxes, which are then used to fund local schools  Insurance is your homeowner’s insurance, which protects you from fire, theft, vandalism, etc.  YOUR TOTAL PITI CANNOT BE MORE THAN 45% OF YOUR GROSS (PRE-TAX) MONTHLY INCOME!!! PITI

  To determine your mortgage payment, try using the Zillow’s Mortgage CalculatorMortgage Calculator  Follow along with the instructions on your worksheet to calculator the costs of your home. Mortgage Payments