1. Housing Costs

2. Mortgage Loans Mortgage Loan Amount= Selling Price – Down Payment Example House is 140,000 and they ask for a 15% down payment $140,000 X 15%= 21,000 $140,000-21,000= 119,000

3. Monthly Payment and Total Interest Example You apply for a loan of 80,000 at an annual interest rate of 8.00 percent for 30 years and want to pay equal monthly payments that include the interest. What is the total interest charge? 80,000/1000X7.34=587.20 X 12 X 30 = 211392-80,000= 131,392

4. Closing Costs  Lender charges closing costs. May include costs for lawyers, credit checks and title searches, surveys, taxes, and preparation of documents! Example  Mortgage 95,500. 15% down. 25 years. Interest Rate 8 percent. What are the closing cost?

5. Example Closing Costs Credit Report65.00 Loan Origination2% of mortgage Abstract of title120.00 Attorney fee250.00 Documentation Stamp.3% of mortgage Processing Fee1.10 of mortgage Total Closing Cost3,194.96

6. Monthly Payment  Interest= Principal X Rate X Time 80,000 Mortgage at 8% for 30 Years Payment Number Monthly Payment Amount for Interest Amount for Principal Balance 80,000 1587.20533.3353.8779,946.13 2587.20532.9754.2379,891.90 3587.20532.6154.5979,837.31 4587.20532.2554.9579,782.36

7. Real Estate Taxes  Real Estate Taxes: Homeowner pays to city or county you live in.  Assessed Value: Dollar value assigned to your property for tax purposes.  Assessed Value is found by the market value X rate of assessment.

8. Homeowners Insurance  You must protect yourself from losses such as fire, theft, and personal liability.  If your house is damaged this coverage will pay for the damage.

9. Homeowners Insurance Premium  Premium: The amount you pay for your insurance coverage.  Call insurance agency to get exact quote for your home

10. Other Housing Costs  Utility costs Mortgage House Insurance Real Estate Taxes Electricity Heating fuel Telephone Water Cell Phone TV service Sewage Internet