HOME AND MORTGAGE RESEARCH/INFORMATION
DAY 1
CAREER SALARY/BUDGET INFORMATION
DAY 1 GOALS: DETERMINE YOUR:
Careers of Interest
Yearly Net Income
Yearly Mortgage Budget
Monthly Net Income
Monthly Mortgage Budget
Automobile Options and Payments
CAREERS OF INETEREST
Using the "Career Cruising" website research two careers in which you have an interest. Fill in the information below based on your findings:
Website:
Username: romeohs
Password: bulldogs
Career #1:
TYPE OF JOB: ________________________________________________
EDUCATIONAL
REQUIREMENTS: ________________________________________________
STARTING INCOME: ________________________________________________
MEDIAN INCOME: ________________________________________________
Career #2:
TYPE OF JOB: ________________________________________________
EDUCATIONAL
REQUIREMENTS: ________________________________________________
STARTING INCOME: ________________________________________________
MEDIAN INCOME: ________________________________________________
Using this information from career cruising, you can determine some key information that helps in creating a budget. In order to know how much money you have to spend on your home, car, etc. you need to know what your “take home” income is going to be.
YEARLY NET INCOME
Remember, your income is subject to income taxes. The amounts noted in Career Cruising is pre-tax or "gross" income. For budgeting purposes, let’s assume the government will take 25% of you income. This will be your after-tax or “net” income (also known as take-home pay).
CAREER #1: ____________________ X .75 = __________________
“gross” starting income X (75%) = “net” starting income
CAREER #1: ____________________ X .75 = __________________
“gross” median income X (75%) = “net” median income
CAREER #2: ____________________ X .75 = __________________
“gross” starting income X (75%) = “net” starting income
CAREER #2: ____________________ X .75 = __________________
“gross” median income X (75%) = “net” median income
YEARLY MORTGAGE BUDGET
Generally speaking you should budget for your mortgage payment (or rent) to be roughly 30% of your gross income. Calculate your estimated mortgage payment below:
CAREER #1: ____________________ X .30 = __________________
“gross” starting income X (30%) = yearly rent/mortgage
CAREER #1: ____________________ X .30 = __________________
“gross” median income X (30%) = yearly rent/mortgage
CAREER #2: ____________________ X .30 = __________________
“gross” starting income X (30%) = yearly rent/mortgage
CAREER #2: ____________________ X .30 = __________________
“gross” median income X (30%) = yearly rent/mortgage
MONTHLY NET INCOME AND HOUSING EXPENSES
You now have the information you need for the two most important budgeted items, your house and your car.
On the previous page, you determined your yearly "take home" pay. However, budgeting for a year would be nearly impossible to manage. Therefore, budgets are created on a monthly basis. To calculate your monthly earnings simply take your annual net income and divide it by 12. Write in that answer in the space below.
Your mortgage (housing expense) is typically the largest expense in a budget. You have previously calculated what you should budget for a mortgage for the year. Divide that figure by 12 to determine how much you should spend on housing each month. Note that information below.
CAREER 1
MONTHLY INCOME MONTHLY MORTGAGE
[pic]
CAREER 2
MONTHLY INCOME MONTHLY MORTGAGE
[pic]
AUTOMOBILE OPTIONS AND PAYMENTS
After housing, the second largest expense for most family budgets is transportation. Using the internet to find yourself a car. You may use dealer websites, used car sites, etc. Let’s also assume you are married for this task. You must also find a car for your spouse.
When you have found the cars you plan to buy, show them to Mr. LeBlanc for approval and then enter the purchase price below.
Find two different car options (two for you, two for your spouse) making sure they are at different price points as you may need to adjust your budget throughout this week.
CAR #1 PRICE: ______________ Model, Make, Year ____________________
CAR #2 PRICE: ______________ Model, Make, Year ____________________
SPOUSE CAR #1 PRICE: ___________ Model, Make, Year ____________________
SPOUSE CAR #2 PRICE: ___________ Model, Make, Year ____________________
Assume you will have to borrow money to purchase the vehicle. Go to and select the "calculators" link from the task bar at the top of the site. Next, select "auto loan calculator" and fill in the relevant information. As for the interest rate, assume the rate is 4% if the car is new and 6% if the car is used. Car loans are typically anywhere from 1 to 5 years. The longer the number of years, the lower your monthly payment, but the more you will pay in interest over the life of the loan.
When you have figured out the monthly payments, show it to Mr. LeBlanc and enter the prices below.
YOUR CAR
CAR #1 MONTHLY PAYMENT: __________
NUMBER OF YEARS FOR LOAN: __________
CAR #2 MONTHLY PAYMENT: __________
NUMBER OF YEARS FOR LOAN: __________
SPOUSE’S CAR
CAR #1 MONTHLY PAYMENT: __________
NUMBER OF YEARS FOR LOAN: __________
CAR #2 MONTHLY PAYMENT: __________
NUMBER OF YEARS FOR LOAN: __________
DAY 2
HOME AND MORTGAGE
RESEARCH/INFORMATION
Go to "". Search for an apartment in the metro Detroit area. Make sure it is large enough to fit the needs of your family. Select and show Mr. Spresney at least two different apartment options, then write them down in the spaces below. Try to make sure that you choose two at different price points, as you may have to adjust your budget through the course of the week.
RENT: DETAILS (city, bedrooms, square footage)
1. apartment #1: ___________ ______________________________________
2. apartment #2: ___________ ______________________________________
Go to "" and follow the instructions to find a home. Select and show Mr. Spresney the information on 3 homes. Fill in the asking price for each home below. Try to make sure that you choose homes at different price points, as you may have to adjust your budget through the course of the week.
COST OF HOME: DETAILS OF HOME (city, bedrooms, square footage)
1. _____________ _________________________________________
2. _____________ _________________________________________
3. _____________ _________________________________________
FIGURING OUT YOUR DOWN PAYMENT
Traditionally, to buy a home, you put down a 20% down payment, and financed the rest through a 30 year mortgage. For each of the homes you picked, take the price of the home and determine what 20% of that amount would be. Fill in that information below:
1. _________________ X .20 = _____________________
(Cost of home) X (20%) (Down payment for home )
2. _________________ X .20 = _____________________
(Cost of home) X (20%) (Down payment for home )
3. _________________ X .20 = _____________________
(Cost of home) X (20%) (Down payment for home )
THE MONTHLY PAYMENT, ETC
Once you've found your three homes and printed the relevant information, go to "". You'll need to find out the cost of a mortgage on each of the houses. To do that follow these steps:
1. Select "mortgage" from the task bar at the top of the page.
2. Fill out the "find a mortgage rate" box in the middle of the page (use "Sterling Heights" for the city and for type of mortgage, select "30 year fixed").
3. The results you get will list a variety of mortgage options from different companies.
Select one of the results and show Mr. Spresney and then fill in the information below:
a. APR - ________
b. Disc/Orig points- ________
c. Rate - __________
d. Fees in APR- __________
4. Next, from the top of the website, select the "calculators" option from the task bar.
5. Fill in the information to determine your mortgage payment:
-Where it says "Enter mortgage amount" fill in the amount of money you'll be
financing (the asking price, minus the 20% down payment)
-Where is says "Length of mortgage term" fill in 30 years, as we will assume you
will use a traditional 30 year mortgage.
-Where it says "Interest rate", use the APR information you found from the
Bankrate website.
6. After filling in the information in step 5, click “go” and it will calculate your monthly payment. Enter that number below. Show Mr. Spresney the results for each home.
Home #1 monthly payment: ______________
Home #2 monthly payment: ______________
Home #3 monthly payment: ______________
7. Then, select “Show amortization table” (the link is about 2 inches below the monthly payment number). It will give you the option of making additional payments each month on your mortgage. Leave this section blank and click “Show/recalculate Amortization table”. This table shows your payments each month for the life of the loan, including how much interest you will pay. Scroll to the bottom of the chart, and enter the final number from the “Total Interest” column below. Do this for each of the three homes.
Home #1 total interest: ______________
Home #2 total interest: ______________
Home #3 total interest: ______________
-----------------------
______________ / 12 = _____________
yearly mortgage monthly mortgage
______________ / 12 = _____________
yearly mortgage monthly mortgage
_____________ / 12 = _____________
starting income monthly starting
_____________ / 12 = _____________
median income monthly median
______________ / 12 = _____________
yearly mortgage monthly mortgage
______________ / 12 = _____________
yearly mortgage monthly mortgage
_____________ / 12 = _____________
starting income monthly starting
_____________ / 12 = _____________
median income monthly median
................
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