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609600-342900Chapter 8 Project – Monthly Housing Expenses00Chapter 8 Project – Monthly Housing ExpensesGo to . Search for and find a house you would like to “buy.” Your house can be anywhere in the United States. Include the following information about your house: AddressPriceHouse size (sq ft)Beds/BathsUse an online mortgage calculator to answer the following questions.You are going to “buy” this home, but you do not have the money to pay for the home in cash. You have other debts and expenses so you decide not to make any down payment. So you decide to borrow money from the bank to cover the entire price of the home. To afford the monthly payments you decide you will pay back the loan over a 30 year period, and the best interest rate you can find for that time frame is 5.5%. What will your monthly payment be?How much will the total amount of your payments be over the 30 years?How much will you pay, in total, just in interest to the bank?How much will you pay, in total, for the purchase of the home?3. The amounts calculated in #2 were only for the home loan itself. We know that mortgage payments each month are going to include other housing expenses, like property tax and homeowner’s insurance. For this scenario we will use an annual property tax rate of 1.5% of the assessed value of the home and an annual homeowner’s insurance rate of 1% of the face value of the home. Additionally, because you did not put 20% down on the home you will pay a PMI payments of 0.75% of the face-value of the home. If the assessed value of the home is 90% of the market/face-value price of the home answer the following questions.a.What is the assessed value of the home you are going to purchase?b.How much will you pay in annual property taxes for this home?c.How much will you pay in monthly property taxes for this home?d.How much will you pay in annual homeowner’s insurance?e.How much will you pay in monthly homeowner’s insurance?f.How much will you pay in monthly PMI?4. Using the figures you have already found for your loan monthly payment, your monthly property tax payment, your monthly homeowner’s insurance payment, and your monthly PMI payment, answer the following questions.a. How much will you monthly payment be to the bank (including the loan monthly payment, PMI, monthly property tax payment, and monthly homeowner’s insurance payment)?b.What will be the total of these payments over the course of the 30 year loan?c.How much more were these monthly housing expenses than the purchase price of the home?5.Now complete each of the above questions using a 20% down payment, 15 year loan at 4% interest, and 0% PMI (because you are putting down 20%).2a.2b.2c.2d.3a.3b.3c.3d.3e.3f.4a.4b.4c.Now write 6-10 quality sentences describing your overall understanding of monthly housing expenses and what you’ve learned concerning home loan payments thus far this trimester. ................
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