Your task is to investigate and report on the aspects of buying a home. Choose one of the homes and complete all of the calculations using the provided information for the home you have chosen. Be sure to label the home that you are choosing to purchase on the calculations worksheet . You will use the information provided below to determine if you have enough income and savings to purchase the home you have chosen. Below is a summary of you and your partner's financial state. This includes your gross monthly income, monthly liabilities in which you have more than 10 months of remaining payments, and your total savings. Monthly Liabilities Savings Gross Monthly Income $2,750 You $25,000 $200 Student Loan Payments $350 Car Payment $250 Student Loan Payments $4,025 $26,500 Your partner LOAN 1 20% LOAN 2 20% LOAN OPTIONS REQUIRED DOWN PAYMENT INTEREST RATE TERM POINTS 3.5% 30 years fixed yes: 2 points (2%) 3.5% 15 years fixed yes: 2 points (2%) The yearly taxes are included on each listing. Use that figure to calculate the monthly tax bill. Assume the insurance will be $85/month. NAME 1.(2 points) Which house did you choose? Explain why you chose it: (28 points) HOUSE LOAN OPTION 1 LOAN OPTION 2 COST DOWN PAYMENT LOAN AMOUNT MONTHLY PRINCIPAL AND INTEREST PAYMENT MONTHLY TAXES MONTHLY INSURANCE TOTAL MONTHLY COST 2.) (4 points) Calculate the adjusted monthly income of you and your partner combined. Show your calculations: Adjusted monthly income: 3.) (4 points) Calculate the maximum monthly payment the mortgage lender will determine you can afford. (using the 28% rule) Show your calculations. Monthly mortgage payment you can afford: 4.) (4 points) Based on your income and your savings, can you afford the home you have chosen? Explain 5.) (4 points) Which loan option are you the most comfortable with? Why? 6.) (18 points) Calculate the TOTAL cost of the house for both loan options. Remember to include all interest, principal, down payment and points. (Do not include the taxes and insurance payments.) Show your calculations. LOAN 1 Total payment in interest and principal over the life of the loan: (2 points) Down Payment: (2 points) Points: (2 points) Total Cost: (2 points) How mu of the total cost is interest? (2 points) LOAN 2 Total payment in interest and principal over the life of the loan: (2 points) Down Payment: (2 points) Points: (2 points) Total Cost: (2 points) How much of the total cost is interest? (2 points) How much money would you save if you choose Loan Option 2? (2 points) HOUSE #1 Detached Single MLS #:09399562 List Price: $169,900 Status: RACT List Date: 12/05/2016 Orig List Price: $169,900 Area: 171 List Dt Rec: 12/05/2016 Sold Price: Address: 2425 N Clarke St, River Grove, Illinois 60171-1827 Directions: Grand to Rhodes South to Fullerton East to Clarke North Lst. Mkt. Time: 88 Closed: Contract: Points: Off Market: Financing: Contingency: Year Built: 1948 Bit Before 78: Yes Curr. Leased: No Dimensions: 42 X 125 Ownership: Fee Simple Subdivision: Model: Georgian Corp Limits: River Township: Leyden County: Cook Grove Coordinates: N:3 W:11 # Fireplaces: Rooms: 5 Bathrooms1 / 0 Parking: Garage (full/half): 12/13/2016 Bedrooms: 2 Master Bath: Shared # Spaces: Gar: 2 Basement: Full Bsmnt. Bath: No Parking Incl. Yes In Price: Remarks: Great opportunity to update this quaint brick Georgian situated on a large lot. New roof, updated electric, new range & refrigerator. CAC, Hdwd Flooring under carpeting. Long driveway leads to a 2 1/2 car garage. Fully fenced yard. Grade school is only a few steps away. Near to shopping, public transportation & restaurants. Not in a flood plain. Home will be conveyed in as-is condition. School Data Elementary: Rhodes (84.5) Junior High: Rhodes (84.5) High School: East Leyden (212) Other: Assessments Tax Miscellaneous Amount: $0 Amount: $4,774.07 Waterfront: No Frequency: Not PIN:12274280330000 Appx SF: 980 Applicable Mult PINS: SF Source: Assessor Tax Year: 2015 Assessor SF Special Assessments: No Tax Exmps: Homeowner Acreage: 32793 Ortoare Special Service Area: No 35. HERE Master Association: No Square Footage Comments: Room Name Size Level Flooring Win Trmt Room Name Size Level Flooring Win Trmt Living Room 17X11 Main Level Hardwood Blinds Master Bedroom 17X10 2nd Level Hardwood Dining Room 9X10 Main Level Carpet Blinds 2nd Bedroom 10x9 2nd Level Hardwood Blinds Kitchen 10X8 Main Level Vinyl None 3rd Bedroom Not Applicable Family Room Not Applicable 4th Bedroom Not Applicable Laundry Room Interior Property Features: Exterior Property Features: Age: 61-70 Years Additional Rooms: No additional rooms Roof: Asphalt/Glass (Shingles) Type: 2 Stories Garage Ownership: Owned Sewer: Sewer-Storm Style: Georgian Garage On Site: Yes Water: Lake Michigan Exterior: Brick Garage Type: Detached Const Opts: Air Cond: Central Air Garage Details: General Info: Commuter Bus, Commuter Heating: Gas, Forced Air Parking Ownership: Train Kitchen: Galley Parking On Site: Amenities: Appliances: Oven/Range, Refrigerator, Parking Details: Asmt Incl: None Washer, Dryer Driveway: Concrete HERS Index Score: Dining: L-shaped Foundation: Concrete Green Discl: Attic: Exst Bas/Fnd: Green Rating Source: Basement Details: Unfinished Disability Access: No Green Feats: Bath Amn: Disability Details: Sale Terms: Conventional, FHA, VA Fireplace Details: Exposure: E (East), W (West) Possession: Closing Fireplace Location: Lot Size: Less Than .25 Acre Occ Date: Electricity: Circuit Breakers Lot Desc: Fenced Yard Addl. Sales Info.: None Equipment: Agent Owned/Interest: No Copyright 2017 MRED LLC - The accuracy of all information, regardless of source, including but not limited to square footages and lol sizes, is deemed reliable but not guaranteed and should be personally verified through personal Inspection by and/or with the appropriate professionals. MLS #: 09399562 Prepared By: Sue Williams L.W. Reedy Real Estate 03/02/2017 05:59 AM NO Your task is to investigate and report on the aspects of buying a home. Choose one of the homes and complete all of the calculations using the provided information for the home you have chosen. Be sure to label the home that you are choosing to purchase on the calculations worksheet . You will use the information provided below to determine if you have enough income and savings to purchase the home you have chosen. Below is a summary of you and your partner's financial state. This includes your gross monthly income, monthly liabilities in which you have more than 10 months of remaining payments, and your total savings. Monthly Liabilities Savings Gross Monthly Income $2,750 You $25,000 $200 Student Loan Payments $350 Car Payment $250 Student Loan Payments $4,025 $26,500 Your partner LOAN 1 20% LOAN 2 20% LOAN OPTIONS REQUIRED DOWN PAYMENT INTEREST RATE TERM POINTS 3.5% 30 years fixed yes: 2 points (2%) 3.5% 15 years fixed yes: 2 points (2%) The yearly taxes are included on each listing. Use that figure to calculate the monthly tax bill. Assume the insurance will be $85/month. NAME 1.(2 points) Which house did you choose? Explain why you chose it: (28 points) HOUSE LOAN OPTION 1 LOAN OPTION 2 COST DOWN PAYMENT LOAN AMOUNT MONTHLY PRINCIPAL AND INTEREST PAYMENT MONTHLY TAXES MONTHLY INSURANCE TOTAL MONTHLY COST 2.) (4 points) Calculate the adjusted monthly income of you and your partner combined. Show your calculations: Adjusted monthly income: 3.) (4 points) Calculate the maximum monthly payment the mortgage lender will determine you can afford. (using the 28% rule) Show your calculations. Monthly mortgage payment you can afford: 4.) (4 points) Based on your income and your savings, can you afford the home you have chosen? Explain 5.) (4 points) Which loan option are you the most comfortable with? Why? 6.) (18 points) Calculate the TOTAL cost of the house for both loan options. Remember to include all interest, principal, down payment and points. (Do not include the taxes and insurance payments.) Show your calculations. LOAN 1 Total payment in interest and principal over the life of the loan: (2 points) Down Payment: (2 points) Points: (2 points) Total Cost: (2 points) How mu of the total cost is interest? (2 points) LOAN 2 Total payment in interest and principal over the life of the loan: (2 points) Down Payment: (2 points) Points: (2 points) Total Cost: (2 points) How much of the total cost is interest? (2 points) How much money would you save if you choose Loan Option 2? (2 points) HOUSE #1 Detached Single MLS #:09399562 List Price: $169,900 Status: RACT List Date: 12/05/2016 Orig List Price: $169,900 Area: 171 List Dt Rec: 12/05/2016 Sold Price: Address: 2425 N Clarke St, River Grove, Illinois 60171-1827 Directions: Grand to Rhodes South to Fullerton East to Clarke North Lst. Mkt. Time: 88 Closed: Contract: Points: Off Market: Financing: Contingency: Year Built: 1948 Bit Before 78: Yes Curr. Leased: No Dimensions: 42 X 125 Ownership: Fee Simple Subdivision: Model: Georgian Corp Limits: River Township: Leyden County: Cook Grove Coordinates: N:3 W:11 # Fireplaces: Rooms: 5 Bathrooms1 / 0 Parking: Garage (full/half): 12/13/2016 Bedrooms: 2 Master Bath: Shared # Spaces: Gar: 2 Basement: Full Bsmnt. Bath: No Parking Incl. Yes In Price: Remarks: Great opportunity to update this quaint brick Georgian situated on a large lot. New roof, updated electric, new range & refrigerator. CAC, Hdwd Flooring under carpeting. Long driveway leads to a 2 1/2 car garage. Fully fenced yard. Grade school is only a few steps away. Near to shopping, public transportation & restaurants. Not in a flood plain. Home will be conveyed in as-is condition. School Data Elementary: Rhodes (84.5) Junior High: Rhodes (84.5) High School: East Leyden (212) Other: Assessments Tax Miscellaneous Amount: $0 Amount: $4,774.07 Waterfront: No Frequency: Not PIN:12274280330000 Appx SF: 980 Applicable Mult PINS: SF Source: Assessor Tax Year: 2015 Assessor SF Special Assessments: No Tax Exmps: Homeowner Acreage: 32793 Ortoare Special Service Area: No 35. HERE Master Association: No Square Footage Comments: Room Name Size Level Flooring Win Trmt Room Name Size Level Flooring Win Trmt Living Room 17X11 Main Level Hardwood Blinds Master Bedroom 17X10 2nd Level Hardwood Dining Room 9X10 Main Level Carpet Blinds 2nd Bedroom 10x9 2nd Level Hardwood Blinds Kitchen 10X8 Main Level Vinyl None 3rd Bedroom Not Applicable Family Room Not Applicable 4th Bedroom Not Applicable Laundry Room Interior Property Features: Exterior Property Features: Age: 61-70 Years Additional Rooms: No additional rooms Roof: Asphalt/Glass (Shingles) Type: 2 Stories Garage Ownership: Owned Sewer: Sewer-Storm Style: Georgian Garage On Site: Yes Water: Lake Michigan Exterior: Brick Garage Type: Detached Const Opts: Air Cond: Central Air Garage Details: General Info: Commuter Bus, Commuter Heating: Gas, Forced Air Parking Ownership: Train Kitchen: Galley Parking On Site: Amenities: Appliances: Oven/Range, Refrigerator, Parking Details: Asmt Incl: None Washer, Dryer Driveway: Concrete HERS Index Score: Dining: L-shaped Foundation: Concrete Green Discl: Attic: Exst Bas/Fnd: Green Rating Source: Basement Details: Unfinished Disability Access: No Green Feats: Bath Amn: Disability Details: Sale Terms: Conventional, FHA, VA Fireplace Details: Exposure: E (East), W (West) Possession: Closing Fireplace Location: Lot Size: Less Than .25 Acre Occ Date: Electricity: Circuit Breakers Lot Desc: Fenced Yard Addl. Sales Info.: None Equipment: Agent Owned/Interest: No Copyright 2017 MRED LLC - The accuracy of all information, regardless of source, including but not limited to square footages and lol sizes, is deemed reliable but not guaranteed and should be personally verified through personal Inspection by and/or with the appropriate professionals. MLS #: 09399562 Prepared By: Sue Williams L.W. Reedy Real Estate 03/02/2017 05:59 AM NO