Juliet's Wonderful World of Social Studies



Name:_________________________________________________ Block A1, A2, B1, or B2CONSUMER PROJECT—HOUSING WORKSHEET DUE Oct. 31st/Nov 1stFind a house for sale that you like using Zillow. Answer the following questions about the house.You can look at other real estate sites as well, but you will need to find all the same information. You can then use the mortgage calculator function on the Zillow site to determine your monthly payment. What is the address?What is the list price?What is the total square footage?How many bedrooms?How many bathrooms?What school district is it in?Is it city water and sewer, or well and septic?What is the exterior material of the house?Now that you have a property picked out, determine the down payment. This is the cash payment that you will have to put down on the house in order to secure a mortgage. Banks don’t want to finance the entire cost of the house upfront, because if you stop making your mortgage payments, then they will be on the hook for the entire loan.To calculate the down payment amount, multiple the total cost of the house by 20% (or, 0.2). Write that number here:The remaining 80% of the house purchase price is the Principal on your mortgage. Principal is the total amount of money you are paying off each month on the house itself (not including taxes and other fees). Mortgages tend to be backloaded, in that you are paying off more principal toward the end of the mortgage than at the beginning of it.What is the total amount of principal on your mortgage?The amount that you just wrote down for #3 is also equal to your mortgage. Now, calculate your Interest rate, which is the first “I” in “PITI.” Assume the average 4% interest rate. Average mortgages are either: 15, 20 or 30 year loans- the longer you have the loan, you lower your payments but the more you pay in interest. If you are married you can deduct .25% off your interest rate because married people are seen as a lower risk. Mortgage term _______________years Interest rate________%Taxes are the “T” in “PITI,” and they’re pretty straightforward to figure out. To calculate the property taxes, go to the “Price/Tax History” tab on the Zillow listing and scroll down until you find the tax history for the property. Use the most recent number available. This number is the annual property tax paid by the homeowners. What is your annual property tax payment?Divide this number by twelve to calculate your monthly property tax payment.The second “I” stands for Insurance. This is a pretty standard cost for most people, unless you are a pyromaniac who also makes bombs in the garage. If the purchase price of your home is more than $250,000, assume an insurance cost of $100 per month. If the cost of the house is less than that, assume an insurance cost of $80 per month. Write your monthly insurance cost here:Write your annual insurance cost here (multiple the last answer by 12):Now, go to and calculate your informationFirst, click the down-pointing arrow on the left side of the screen that says “Advanced Options.”Next, enter your home price, as determined by your answer from #1b.Enter your down payment amount, as determined by your answer to #2.Enter your interest rate, as determined by your answer to #4.Plug in your desired loan term in years.Leave “Included taxes/ins.” checked.Enter your annual property tax amount from #5a.Enter your annual home insurance cost from #6b.Uncheck the box that says “Include PMI.” Don’t worry about the HOA box (Homeowners Association Fees) unless you’re buying a condo or living in a gated community.What is your total monthly payment (the whole PITI, taken together)?Is this less than or equal to 45% of your household’s monthly gross (pre-tax) income?If yes, you can have the house.If no, start over. You can’t afford this house.RENTINGNow find an apartment to rent in the same area as the house you found above. You still need to consider the size of your family when choosing the apartment. (i.e. 2 kids = 3 bedroom) and whether or not you need a pet friendly unit. You will also want to consider what type of amenities they have (gym, pool, in unit washer/dryer) as part of your decision. If are not having good luck online you can get apartment showcase brochures at a lot of local grocery stores, but typically the online listings will give you a lot of information. You can use the form on the next page to help you organize your info, but you are free to come up with your own format as long as you cover the same information.Address and Description(# of Beds/Bath, Sq. Footage, 1 or 2 Story, garage? etc.)Financial InfoExtrasMonthly Rent:Security/Pet Deposit:Amenities? (pool, clubhouse etc?)Late Fee:Utilities included in Rent:Utilities not included in rent:Avg. Monthly expense?What are the advantages of renting?What are the disadvantages of renting?EVIDENC E – Screen shots of the House Listing and Apartment DetailsHousing Reflection After you have checked out a few places and compared the pros and cons of renting vs. purchasing a home, determine which option you would likely choose. Remember, although price is often a major determinant in selecting a place to live, it is rarely the only determinant. Other factors that may influence your decision might be maintenance requirements, location, access to extras like pool/weight room and closeness of neighbors. Your reflection should be at least a 1/2 page, typed, and should explain your decision-making process. Your reflection should also include your monthly payment, whether it is for rent or a mortgage including any applicable insurance or tax payments. If you have questions, check in with me. CONSUMER PROJECT: HOUSING RUBRICCategory012Housing PacketHousing packet is not filled out.Only one choice (either renting or buying) is filled out.Both sections of the housing packet are filled out parisonAuthor makes no comparison between buying or renting a dwelling.Author clearly establishes the pros and cons of renting and owning one’s residence.MathMath is incorrect.Math is correct.Write-UpWrite-Up does not fully explain the decision between renting or buying or the thinking behind it.Write-Up clearly and thoroughly explains the author’s decision to rent or buy and why the author made that decision. Total Score: _____/5 ................
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