1. Annuity Project - Mortgages OCTOBER 2014

2. 165 Harvey Avenue  3 Bedrooms  1 Bathroom  Walking distance into Doylestown  Corian Counters  Pergo Flooring  Expanded Oak Cabinetry  Excellent School District

3. http://www.zillow.com/homedetails/165-Harvey-Ave-Doylestown-PA-18901/8986973_zpid/ 165 Harvey Ave Doylestown, PA 18901 1,280 Sq Feet $325,000

4. Down Payment  $325,000 x 20% = $65,000  $325,000 - $65,000 = 260,000 Cost of HouseCost of Down PaymentDown Payment Cost of HouseDown PaymentAmount Financed

5. Structure 1 My monthly payment using structure 1 will be $1,279.04

6. Structure 1  $1,279.04 x 360 = $460,455.73  $460,455.73 - $260,000 = $200,455.73  $65,000 + $260,000 + $200,455.73 = $525,455.73 Monthly Payment 30 years time Total Amount Paid Amount Financed Total Interest Paid Amount Financed Down Payment Total Interest PaidFinal Amount Paid Total Interest Total Cost

7. Structure 2 My monthly payment using structure 2 will be $1,603.08

8. Structure 2  $1,603.08 x 240 = $384,739.20  $384,739.20 - $260,000 = $124,739.20  $65,000 + $260,000 + $124,739.20 = $449,739.20 Monthly Payment 20 years time Total Amount Paid Amount Financed Total Interest Paid Amount Financed Down Payment Total Interest PaidFinal Amount Paid Total Interest Total Cost

9. Structure 3 My monthly payment using structure 3 will be $1,874.69

10. Structure 3  $1,874.69 x 180 = $337,445.20  $337,445.20 - $260,000 = $77,445.20  $65,000 + $260,000 + $77,445.20 = $402,445.20 Monthly Payment 15 years time Total Amount Paid Amount Financed Total Interest Paid Amount Financed Down Payment Total Interest PaidFinal Amount Paid Total Interest Total Cost

11. Analysis Questions Monthly Payment In terms of monthly payment, Structure 1 is the least expensive. Amount in Interest In terms of amount paid in interest, Structure 3 would be the least expensive. Total Amount Paid In terms of total amount paid for the home, Structure 3 would be the least expensive.

12. If I were a college professor and earned $120,000 per year I would purchase this house. I believe this house would be an excellent fit for a male like myself who is single and looking to eventually start a family. I have enough money to live comfortably in an affordable house conveniently located in Doylestown. I decided to go with the Structure 3 mortgage because I can afford it and I would have to pay the least amount of total interest. I believe this sets my up for a nice life in the future if I would ever like to get married. My budget includes the necessities for myself and that’s it. I am going to save the rest for later in life. This will set up for a comfortable future. Analysis Questions  Salary per year: $120,000  Salary per month: $10,000  Salary per month after taxes: $6,576.57  Cost of Monthly Budget: $1,500  Cost of Monthly Mortgage Payment (Structure 3): $1,874.69  Total Amount I keep after taxes, fees, and budget: $3,201.88