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BUY A HOUSE

BUY A HOUSE. HOW MUCH HOUSE CAN YOU AFFORD?. GROUP 5. ERICA MCMILLAN- BRADLEY ELLIS – PILAR GONZALEZ. RESULTS HOUSE PRICE /30 years loan. Total mortgage $ 228,600 /monthly $ 1022.95 with 3.47% interest rate Total mortgage $ 141,210 / monthly $634.09 with 3.5% interest rate

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BUY A HOUSE

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  1. BUY A HOUSE HOW MUCH HOUSE CAN YOU AFFORD?

  2. GROUP 5 ERICA MCMILLAN- BRADLEY ELLIS – PILAR GONZALEZ

  3. RESULTS HOUSE PRICE /30 years loan • Total mortgage $ 228,600 /monthly $ 1022.95 with 3.47% interest rate • Total mortgage $ 141,210 / monthly $634.09 with 3.5% interest rate • Total mortgage $120,000 monthly $515.61 with 4.0% interest rate

  4. RESULTS HOUSE PRICE/15 YEARS LOAN • MORTGAGE $228,600 / $1542.97 MONTHLY PAYMENT / 2.67% INTEREST RATE. • MORTGAGE $141,210 / $958.27 MONTHLY PAYMENT/ 2.75% INTEREST RATE. • MORTGAGE $ 120,000 / $ 745.83 MONTHLY PAYMENT / 3.00% INTEREST RATE.

  5. HOUSE PRICE / ADD $100.00/15 YEARS • MORTGAGE $228,600 /SAVE $3,801.37 FROM THE TOTAL COST • MORTGAGE $141.210 / SAVE $3,754.40 FROM THE TOTAL COST • MORTGAGE $120,000 /SAVE $4,000 FROM THE TOTAL COST • PROS • SAVE MONEY • FAST PAYING LOAN • FAST EQUITY

  6. 30 YEARS LOAN • PROS • Great option for someone who gets paid minimum wage • Payments will be lower, so it would be good for a tight budget • The extra money can be used to improve and increase the value • CONS • House will have expensive mortgage • No equity soon/minimum 10 years • Twice as many payments to be made • Higher interest to be paid. • Loan will be longer

  7. 15 YEARS LOAN • PROS • Great option to pay mortgage fast • Pay less for the total amount of the house • Gain equity fast • CONS • Have to have a permanent higher income to cover other than the mortgage • Emergency may occur and we will have to make drastic changes

  8. Conclusions • Buy vs. renting • Sometimes purchasing a home could be a great investment if you are planning to live in a particular area for at least 10 years in order to make an equity. • To buy includes other expenses like fixing and improving while you are there. • When we rent we don’t have to worry about those things because the apartments are responsible for that. • Renting a home could be more expensive than an apartment because we will be responsible to take care and pay for any damage to the house. • Renting does save you money each month, the mortgage is lower than that of a house

  9. New ideas • Interesting just how much planning goes into buying/renting a house or apartment • How powerful math is in everyday life • Useful to see different tools and websites • To buy a house or rent we need to find out all the details like taxes, future of the area, how long you will stay there and always refinance in case plans change.

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