Utah Family & Consumer Science



Name _______________________________________________________________ Date __________Webquest: An Investigation of Housing & Car CostsHead’s Up: This assignment does have a lot of pieces, but it really isn’t hard! Break it up into small steps and be sure to follow all instructions carefully. Take each bit section by section to make sure everything is complete. ?You will have multiple days in class to complete this assignment. Do not turn in this webquest until you’ve completed all items from the check sheet below:ElementDetailsPoints PossibleEarnedPart 1: TRISH AND SCOTT’S BIG ADVENTUREStep 1: Reading Guide (pg 2-3)Read the introduction (pg 2), then answer the questions following the introduction (pg 3).20Step 2: House Research (pg 4)Go to provided websites, research houses with the features Trish and Scott are looking for. Then, record the answers in the charts. 25Step 3: Mortgage Calculations (pg. 5)Calculate the mortgage for each home and fill in the information below. (More instructions on pg 5)10Part 2: A Hot Set of WheelsStep 1: Pick a CarInstructions on pg. 65Step 2: Define Some WordsInstructions on pg. 620Step 3: Calculate the CostInstructions on pg. 720Step 4: Summary2 paragraph written reflection on this experience (Instructions on pg. 8)20TOTAL165PART 1- Trish & Scott’s Big Adventure - HousingIntroduction:Consider the situation of Trish and Scott, a young couple with two small children living in Annapolis, Maryland. Both work. Scott is a family counselor and Trish is a production manager for a small computer company. Trish has just upgraded her education and is thinking about several new job offers all of which require the family to relocate out of state. In Annapolis, Trish and Scott live in a 3-bedroom, 2-bath home on a .5 (half acre) lot. The house is 15 years old and is 3,000 square feet in size. Their current monthly house payment is $1,050, and their combined gross income is $75,000 per year (Trish earns $40,000 and Scott earns $35,000).According to the Mortgage Bankers Association, 28%-33% of your monthly income is considered the maximum amount you should spend for housing expenses per month (including loan payment, taxes, and insurance).In order for Trish and Scott to relocate, they must be able to purchase a 3-bedroom, 2-bath home on at least a .5 acre lot and the home cannot be more than 15 years old. Also, the mortgage payment cannot be more than 33% of their new projected monthly income (less than 33% would be desirable).Let’s assume:1. They can sell the Maryland house for $185,000, pay off their mortgage and have $30,000 left over for a down payment on a new house.2. Trish will be earning an additional $15,000 per year if they move ($40,000 + $15,000 = $55,000) andScott will still be earning $35,000 per year. Their new income will be $90,000 per year.3. Their maximum mortgage allowance is 33% of their new combined monthly income.Your job today is to examine the housing costs associated with one of Trish’s new job offers. 1. Using the information above, complete the reading guide below.2. Complete the search for three possible houses in your chosen city (DON’T USE THE SAME CITY AS YOUR NEIGHBOR!) using the worksheet.3. Calculate the house payment and complete the last worksheet.Belleville, IllinoisBangor, MaineBozeman, MontanaCollege Station, TexasDurham, North CarolinaSalt Lake City, UtahMinneapolis, MinnesotaNampa, IdahoWalnut Creek, CaliforniaWichita, KansasNew York City (Manhattan), NYPhoenix, ArizonaLas Vegas, NevadaHonolulu, HawaiiLansing, MichiganMemphis, TennesseeProvo, UtahStep 1: Reading Guide1. Where do Scott and Trish live?2. What is Scott’s job?3. What is Trish’s job?4. Why are they considering relocating out of state?5. What are the specifications of the house they are currently living in?Bedrooms:Bathrooms:Lot size:House age:House size: 6. What is their current monthly house payment? $____________________7. What is their combined gross income? $____________________8. According to the Mortgage Bankers Association, what is the maximum percentage of total monthlyincome you should spend for housing expenses? ______________%9. House expenses include what?10. What percentage of gross income is Trish & Scott’s current house payment?Current monthly house payment amount $_______________Total income earned/month by Trish & Scott together $_______________Percent of gross monthly income (monthly payment/monthly income) _______________%11. What are the requirements to make the move?12. What is a mortgage?13. For what amount can they sell their current house? $____________________14. What amount will they have left over for a down payment? $____________________Step 2: Housing Research1. City Chosen:___________________________________________________Within the city you’ve chosen, find Trish and Scott a potential house similar to the one they had in Annapolis. ?Use the following websites to guide your research:National Association of Realtor’s web site- - Zillow- Any other internet real estate sites.*Remember, the key features you are looking for are: - If you cannot find something that matches this description, find something very close!-3,000 square foot-3-bedroom-2-bath home-? (.5) acre lot,-15 years old or newer2. When you have found houses on the web site, select three (3) potential houses and record below:HOUSE #1Website Source:Asking Price:Square Footage:# of Bedrooms:# of Bathrooms:Lot Size:Age of Home:Built Year:Special Features:HOUSE #2Website Source:Asking Price:Square Footage:# of Bedrooms:# of Bathrooms:Lot Size:Age of Home:Built Year:Special Features:HOUSE #3Website Source:Asking Price:Square Footage:# of Bedrooms:# of Bathrooms:Lot Size:Age of Home:Built Year:Special Features:Step 3: Mortgage CalculationsCalculate Trish and Scott’s monthly house payment, using the payment calculator at .To make the calculation, you need the following additional data:a. 30-year fixed mortgageb. 6.0% interest ratec. $30,000 down payment from sale of house in MarylandCalculate and record the monthly payment for the houses you selected. What is the monthly payment for each house?House #1 $_______________________________________House #2 $_______________________________________House #3 $_______________________________________4. How do housing costs compare between Annapolis and the new city?5. Based on the 28-33% mortgage/gross income rule (as found in introduction) and $90,000 gross income ($7,500 monthly income), can Trish and Scott afford any of the three houses you selected? Explain. *HINT: (Divide the new monthly payment by Trish & Scott’s monthly income.)House #What percentage of their income would the mortgage be?Can they afford this house?House 1:House #2:House #3:PART 2- A Hot Set of Wheels497205053530500CONGRATULATIONS! You get a car, BUT it is not paid for. Your job is to find out how much your monthly payments will be on this car for a 5-year loan and a 10-year loan. You can choose to pay a small down payment (up to $1000) if you would like.Step 1: Pick a CarYou will be searching for a car of your choice. You can go anywhere on the internet to get a car: ksl, ebay, or a car dealership. When you choose what car you want, please fill out the information below.Car: _____________________________Car Price: ____________________Bought from: _______________________Step 2: Define some WordsNow that you have chosen which car you want, it is time to calculate the cost to you per month (we are assuming you cannot pay for the entire car from the start), but first, let’s define some important words. Search for these definitions online.LOAN:DOWN PAYMENT:INTEREST RATE:BLUE BOOK VALUE:COSIGNER:CERTIFICATE OF TITLE:Step 3: Calculate the CostCalculate the costs using the website below: AUTO AUTO LOAN CALCULATOR***Assume that you have $1000 to help you pay for this car. That would be considered your DOWN PAYMENT. 5 Year LoanDown Payment _________________Loan Amount ___________________ (Cost of Car – Down Payment)Loan Term ____5____ years or __________ monthsInterest Rate 3.0% per yearLoan Start Date (Just put today’s date)What will your monthly payments be? _____________How much TOTAL interest will you be paying on the car? _____________(***Click on the Show/Recalculate Amortization Table to get interest info. It will be found at the bottom of the TOTAL column)10 Year LoanDown Payment _________________Loan Amount ___________________ (Cost of Car – Down Payment)Loan Term ___10____ years or __________ monthsInterest Rate 3.0% per yearLoan Start Date (Just put today’s date)What will your monthly payments be? _____________How much TOTAL interest will you be paying on the car? _____________(***Click on the Show/Recalculate Amortization Table to get interest info. It will be found at the bottom of the TOTAL column)PART 3- Reflection You’ve learned a lot about budgeting; now it’s time to reflect. ?Write a two-paragraph (4-5 sentences EACH paragraph) reflection incorporating the following.Paragraph One:Where did you choose to live and why?Explain the difference between “wants” and needs.”Paragraph Two:What did you enjoy about this assignment?What challenges did you face?What did you learn?SUMMARY PAPER __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ................
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