See attached for complete instructions,details, and gradingrubricfor this assignment.

Your Assignment

You will first need to research the housing market and compare the values of two similar homes in two different areas. The two homes must be extremely similar in structure size, land size, year built, and additions such as swimming pools or barns. Then, based upon your findings, you will select one of the homes to purchase, calculate a monthly payment on the mortgage note, compare this information with what you can potentially afford, and address additional questions related to home ownership.

Scenario

After a number of years of planning, you have made the decision to evaluate the potential purchase of a home. The goal of the assignment is to compare two homes based upon on demographics, and to also analyze a number of additional factors related to the home buying process and ongoing possession.

Your Role

You will first need to research the housing market and compare the values of two similar homes in two different areas. The two homes must be extremely similar in structure size, land size, year built, and additions like a swimming pool or a barn. Then, based upon your findings, you will select one of the homes to purchase, calculate a monthly payment on the mortgage note, compare this information with what you can potentially afford, and address additional questions related to home ownership.

Your Assignment You will first need to research the housing market and compare the values of two similar homes in two different areas. The two homes must be extremely similar in structure size, land size, year built, and additions such as swimming pools or barns. Then, based upon your findings, you will select one of the homes to purchase, calculate a monthly payment on the mortgage note, compare this information with what you can potentially afford, and address additional questions related to home ownership. Scenario After a number of years of planning, you have made the decision to evaluate the potential purchase of a home. The goal of the assignment is to compare two homes based upon on demographics, and to also analyze a number of additional factors related to the home buying process and ongoing possession. Your Role You will first need to research the housing market and compare the values of two similar homes in two different areas. The two homes must be extremely similar in structure size, land size, year built, and additions like a swimming pool or a barn. Then, based upon your findings, you will select one of the homes to purchase, calculate a monthly payment on the mortgage note, compare this information with what you can potentially afford, and address additional questions related to home ownership. Key Players: Michael Joseph, Real Estate Agent, \"It is wonderful to be able to assist prospective home owners in locating real estate options! After all, people want to find their dream home. Location is an important consideration that needs to be taken into account. However, it is also essential to find a home that has the right amount of space, both inside and out. Beauty is in the eye of the beholder, and a home should provide a welcoming space and comfort.\" Bethany Smith, Mortgage Lender, \"As a mortgage lender, my goal is to make sure that my clients have a fair opportunity to purchase real estate. However, I also need to ensure that we maintain high credit standards to minimize potential losses and carefully evaluate all potential deals. In turn, borrowers need to carefully weigh their options when considering a home purchase, while accurately estimating loan payments to verify that mortgage notes are repaid as agreed.\" Timothy Baxter, Current Homeowner/Seller, \"I have had my home on the market for almost six months, and I am hoping that a buyer will come along soon. The square footage of the house is slightly below average relative to others in the area, and this structure was built a number of years ago. But, I believe that individuals will be pleasantly surprised when it comes to the proximity of several shopping complexes and the interstate. Additionally, our school district is top ranked. This could be exactly what you are looking for.\" Mary Thompson, Condominium Association, President, \"I believe that too many people always assume that home ownership means they must find a single-family dwelling. There are other options available. Yes, I know that additional fees may slightly increase monthly expenses or there may be adjacent living units in the immediate area; however, there can be advantages associated with these alternative living arrangements such as covered maintenance and common recreational facilities. Your choices should not be limited.\" Assignment Given the scenario, your role and the information provided by the key players involved, it is time for you to make a decision. YOU DECIDE Activity / Assignment Assignment House #1 1. Go to the following website: http://www.realtor.com/. House #2 The goal now is to find a very similar house (age, lot size, square footage, number of rooms, and number of bathrooms). 2. Enter a ZIP code. Repeat Steps 1 through 12. 3. Chose Homes for Sale. 4. Enter your price range (the minimum and maximum amount you want to spend). 5. Enter the specifications (number of bedrooms and number of baths). 6. Hit Search. 7. Find a home that you like or would In Step 2, pick another ZIP code 20+ miles away from the first ZIP code you picked for the first house. In Step 5, pick the same specification and choose a house that was built in the same year or so as the first house. Also, try your best to find a house that has the same lot size and square footage as the first house. House #1 House #2 consider. 8. Go to the U.S. Census website: http://www.census.gov. 9. Click on the American Factfinder tab on the left of the screen. 10. Under the Fact Access to Information title, enter the ZIP code of the house you found. 11. You will get lots of data on demographics like age, gender, family size, education, income, and crime rates. 12. Find out the price per square foot for the house you found. Construct a table showing a comparison of data (including location, square footage, total price, price per square foot, and specifications), for both houses and then write a 3-4-page paper detailing the following: 1. What is the logic for choosing your two ZIP codes? Is the selection based upon work location, family location, good schools, and so on? 2. What is the logic behind choosing the size and specifications of each house? 3. Compare the total price of the two homes. 4. Compare the price per square foot for each house. 5. Compare the demographic data (referring to the location and ZIP code) of each house. Based upon these data, try to explain the similarities and differences in pricing for each home. 6. Select the home that you will purchase and explain the reasoning behind your selection. Assume that at least a 20% down payment is required. How much money would you need to have saved? After the down payment, what would be the purchase price of the home? 7. Assume the following: Closing costs (including all potential loan origination, title, and closing fees) are $3,500. You have been approved for a 30-year fixed-rate mortgage note at a rate of 5.0%. Calculate the monthly payment for this loan. (It is recommended that you show your calculation.) 8. Using your textbook readings this week as a resource, and based upon your monthly gross income and current additional debt payments, perform the calculations below (it is recommended that you show your calculations). Your affordable monthly mortgage payment (assume your lender uses a guideline of 33% for monthly gross income or 38% if you have other debt payment obligations) Your affordable mortgage amount (meaning the amount that can be financed; assume the loan terms under #7b) Your affordable home purchase price (assume a 20% down payment). Compare these calculations to the previous data under #6 and #7. What are your conclusions? Discuss your findings, including any surprises! When purchasing a home, what additional considerations must you take into account? Discuss the parties that will be involved, what type of documentation will be required, home inspection requirements, any additional financing options that you would evaluate, and so on Present a general summary regarding home ownership. What are the advantages and disadvantages of home ownership, and how does your personal choice fit into your overall personal financial plan? Grading Rubric Category Points Description Home Research and Comparisons 20 A comparison of the two homes identified is presented in detail through the completion of the table and a discussion (#1-5) Home Selection and Mortgage Payment Calculation 20 Home selection decision; calculation of the mortgage payment (# 6 and #7) Category Points Description Home Affordability 15 Calculate, discuss, and compare home affordability (#8). Home Purchasing Consideration s 15 Discuss home purchasing considerations (#9). Home Ownership Summary 20 Present a general summary related to home ownership (#10). Formatting and Grammar 10 Points will be deducted for poor grammar, spelling, or writing style. Any external sources must be cited. References must be cited in two places: within the body of your paper and on a separate reference list. Please follow required APA guidelines, as well as guidelines regarding plagiarism. Total 100 A quality paper will meet or exceed all of the above requirements