Loan Project Steps: Click here to check out the average salaries for different careers: http://www.educationplanner.org/students/career-planning/explore-salary-pay/learn-more-earn- more Explore the 13 career fields: https://www.indeed.com/career-advice/finding-a-job/careers-by-field Choose one job/career you think you would enjoy: Job = _____________________ Google your job and its average salary: Average Yearly/Annual Salary = _______________ Monthly Salary= _________________ Taxes are about 25% of your paycheck, so will only be taking home 75% of your pay after tax deductions. 25% of income = _________________ to pay taxes Pay after taxes = ____________________ Choose your dream state destination in the U.S. that you would want to live if money wasn't an issue: Home Destination in the state of __________________ Go to https://www.zillow.com/homes/ Or https://www.realtor.com/realestateforsale To find/search for your dream home in the destination you want to live. (Try to find a house that cost between $100,000 - 900,000 ) Copy the URL link to your dream house here: Take 4-6 screenshots of the images of the inside and outside and post here (once it sells, it will be taken off the realtor site): Pictures of House: Cost of House: (Listed Price on site): ____________________ 20% down payment to avoid paying PMI (private mortgage insurance): _____ Total Loan Amount: ____________

Go to https://www.nerdwallet.com/mortgages/mortgage-rates

For the home purchase: change the zip code to where your house is located, change the purchase price to your original house price without the 20% down payment because it will factor in the down payment of 20%. Make sure the down payment says 20%, because it will calculate the 20% down payment and use that payment to figure out the new loan amount. Let's say you have a good credit score, so change the credit score to 700 - 719. Change the loan term to 15 year fixed. Click on update results after you have changed all the filters and choose the first rate that comes up.

Record the results here: 15 year loan:

APR = ____% Int. rate = ___% Monthly payment = $_______ Total Fees: $________

Keep all the previous filters the same, but change the loan term to a 30 year fixed. Click on update results after you have changed all the filters and choose the first rate that comes up.

Record the new results here: 30 year loan:

APR = ____% Int. rate = ___% Monthly payment = $_______ Total Fees: $________

Use Iowa's average property tax rate of 1.5% to calculate yearly and monthly cost for the property taxes on your home.

1.5% = _________ as a decimal. Take this decimal and multiply it by the total value/cost of your home without any down payments to find the yearly cost. Yearly Taxes could be anywhere between $1,500 to $15,000 depending on the total value/cost of your home.

Yearly Taxes: .015 x _Total Home Value/Cost____________ = $_______________________

Then, divide your answer by 12 to find the monthly cost for your property taxes.

Monthly Tax Cost: $______________________

You will use the tax amount above to compare the monthly payment results to this site:

https://www.bankrate.com/mortgages/mortgage-calculator/

Change the home price to your original house price without the 20% down payment because it will factor in the down payment of 20%. Make sure the down payment says 20%, because it will calculate the 20% down payment and use that payment to figure out the new loan amount.

Change the loan term to 15 years. Change the interest rate to the 15 year one you found from above. Change the zip code to your house area.

Click on arrow for taxes, insurance and HOA fees:

Change the credit score to 700 - 719.

Change the property tax per month to the monthly tax cost you calculated from above.

The average cost of homeowners insurance in Iowa is about $1,692 per year. Divide this amount by 12 to find the monthly cost of home insurance.

Monthly cost of home insurance: $__________________

Type this result in for homeowner's insurance per month.

Type in $0 for PMI insurance, since you will not have to pay PMI insurance since you are making a 20% down payment. Anything under a 20% down payment requires additional private mortgage insurance (PMI).

Let's use $0 for HOA fees. Some residential areas might be part of a home owner's association, where there are certain requirements you have to meet for lawn care, parking, trailer storage, and even painting your house or doors (might not be allowed to change the color of house/doors) or it might be near golfing areas/swimming pools included in cost/etc.

Click on update. Record your results here: 15 year loan:

Principal and interest: $________

Property Tax: $________

Homeowner's Insurance: $____________

Total Monthly Fees: $________________

Keep everything the same, but change the loan term to 30 years and the interest rate to 30 year rate from the site above.

Click on update. Record your results here: 30 year loan:

Principal and interest: $________

Property Tax: $________

Homeowner's Insurance: $____________

Total Monthly Fees: $________________