Buying a House Project

Introduction

It is a very big decision to become a first-time homeowner. There are many things that need to be considered. Three important factors are the price of a home, mortgage interest rates and a person's salary. In this project we will look up current values for these three factors and compare them across the United States. We will see how current interest rates affect the mortgage a person can afford.

Part 1: Shop for a House

Usehttp://www.realtor.com to shop for two homes using the zip code 27603.One home must be under $350,000 and have 3 bedrooms and 2 full bathrooms.The other home will be your idea of your dream home. You must use the SAME ZIP CODE of 27603, however you may set any other parameters you wish in the search. Fill in the table below with the information about the two homes you choose.

Address	Square Footage	List Price of Home	Price per Sq. Foot	Bedrooms	Bathrooms	Features

Part 2: Shop for a Mortgage

Use the following information regarding interest rates (with excellent credit):

	15-Year Fixed	30-Year Fixed
Interest Rate	3.5%	5.0%

Part 3: Calculate your costs

Fill in the tables below. You will use both the house listing on realtor.com and your knowledge from the textbook.

Address of House #1 _____________________________________

	15-Year Fixed	30-Year Fixed
List price of Home
Down Payment Amount (20% of list)
Amount Borrowed (Price of Home - Down Payment Amount)
Interest Rate (based on excellent credit)
Monthly Payment for Principal and Interest
Total Paid Back to Bank (principal + interest)
Estimated Annual Property Tax Amount (from Realtor.com)
Estimated Annual Insurance (from Realtor.com)
TOTAL MONTHLY PAYMENT

Address of House #2_____________________________________

	15-Year Fixed	30-Year Fixed
List price of Home
Down Payment Amount (20% of list)
Amount Borrowed (Price of Home - Down Payment Amount)
Interest Rate (based on excellent credit)
Monthly Payment for Principal and Interest
Total Paid Back to Bank (principal + interest)
Estimated Annual Property Tax Amount (from Realtor.com)
Estimated Annual Insurance (from Realtor.com)
TOTAL MONTHLY PAYMENT

Step 4: Calculate your closing costs

Using the following information, calculate the amount of money you would need to bring to closing for both of your houses chosen.

	House # 1	House #2
Estimated Closing Costs - 3% of sales price - Attorney- $450 - Title- $390