1 / 7

Buying a House

Buying a House. By: Kaitlynn Delaney, Lindsey Mann, Aimee Morgan, Kevin Whitmer. Insights.

lilah
Download Presentation

Buying a House

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Buying a House By: Kaitlynn Delaney, Lindsey Mann, Aimee Morgan, Kevin Whitmer

  2. Insights The 15 year mortgage is a better deal; it has a better rate and starting with the first payment, more money goes to the principle than to interest. This ultimately results in paying roughly 40% less interest than with a 30 year loan. The number of payments paid on a 30 year loan for a $235,000 house before there is more coming off the principle than being paid in interest is 104. With a 15 year loan, more is paid on the principle than in interest starting with the first payment. Renting is usually a temporary situation, though it does have benefits. Interest rates vary from bank to bank and day to day. Also, it is important to get a fixed rate, so that the interest rate does not increase during the length of your mortgage.

  3. Interest Rates University Credit Union 30 year loan: 3.250% 15 year loan: 2.625% www.zillow.com 30 year loan: 3.313% 15 year loan: 2.687% Interest rates vary, so it’s a good idea to shop around before deciding on a Bank or Credit Union to work with. • America First Credit Union • 30 year loan: 3.652% • 15 year loan: 3.152% • America First Credit Union • 30 year loan: 3.875% • 15 year loan: 3.500%

  4. Renting VS. Buying • Positives: • If something breaks, you can call the landlord for repairs. • Other than the length of the lease, which is usually no longer than a year, there is not a long term commitment. • Negatives: • Monthly Payments go to Landlord. • Live by someone else’s rules.

  5. Renting VS. Buying • Positives: • Monthly payments go towards your house. • Live by your rules. • Negatives: • If something breaks you must pay to get it fixed. • Long-term commitment to the mortgage company.

  6. Conclusions • Mortgage payments should not surpass 33% of a families take home pay. • A 30 year loan may be tempting, but it’s almost easier to pay the 15 year loan, because while it’s more money each month, less is paid in the long run. And 15 years really isn’t that long of a time. • If someone has the ability, a 15 year loan is the way to go. In the long run, it will save thousands to tens of thousands in interest depending on the price of the mortgage.

  7. Picture References http://blog.accesshorizon.com/2011/09/29/what-to-ask-when-buying-a-house-6-questions-for-potential-buyers/ http://www.mint.com/blog/how-to/advice-renting-out-your-home/ http://stepstobuyingahouse.net/the-process-of-buying-a-house/ http://money.cnn.com/galleries/2009/real_estate/0905/gallery.homeowner_perks_stimulus_package.toh/10.html

More Related