1. Team 3 Alem Abraha – Organizer Antonio Lopez – Techie 1 Christopher Nguyen – Researcher Thuy-Quyen Pham – Summarizer Keith Smith – Techie 2

2. Options when starting the loan Effects of down payment related to interest and monthly payment Costs associated with buying and leasing Benefits of buying Benefits of leasing Overall Judgment Buy vs. Lease a House

3. Scenario constants 3-5 years after graduation Starting salary of $70K w/Gradient of $1000 Person has $80K in savings account For 1 & 2 yearly savings are 15% of his salary For 3 yearly savings are 25% of his salary Assume he invests all of his yearly savings with 5% return. House being bought $500K Monthly rent of about $1600 to start

4. Scenario 1 - Buying Have the person put down $80K to see how much monthly payments are and the quantity saved from obtaining the lower loan amount, effects of interest and such. Also factor in costs associated with owning a home.

5. Scenario 2 – Buying Have the person be accepted to finance 100% of the $500K with no down. Thus invest the $80K in something with a return of say 5% and see how that money changes the end result. Find out what the Net Present Worth is for example.

6. Scenario 3 - Renting How much money is spent on renting over 10 years. Also since the person has “more money on hand” perhaps the investment is paying enough to support the rent and effects of costs of renting. Assume the person invests the $80K in something with a return of say 5%.

7. Information Sources www.bankrate.com Loan officer in San Diego Parents/Relatives for accurate range of cost of living/buying/renting Textbook Internet