Tammy and Jim are planning on buying a house in a newly developed neighborhood populated by numerous other young couples and young families. The development has a community pool, playground, and basketball court in addition to newly constructed picnic shelters. They are getting a loan for $250,000 on a 30 year mortgage at 5.5%; annual property taxes are expected to run $2,500, homeowners insurance adds another $780 per year, and the communitys association fees are another $60 per month.

a. Using the same calculator(http://www.mortgagecalculator.org/) as in question 4, find their base mortgage payment (no taxes, fees, etc. included).

b. Then, calculate (by hand) what their total housing expense would look like once taxes, fees, etc. are added in monthly.

c. Besides the taxes and fees listed here, where else do you think new homeowners get surprised in the costs of home ownership?

here is the calculator

http://www.mortgagecalculator.org/