- What is 8 times your annual income? _________________
- What is 30% of 8 times your annual
income? _________________
- What is the most that you can spend on a house? ________________
- Find a house in your price range (see #3) and get a description and price of your house. You may choose to buy a house in the Bloomington-Normal Area or anywhere in the United States as long as it is within your price range. It can be a new house or one that is being resold by an agent.
If you want to use the Internet
- go to: http://realestate.yahoo.com/realestate/buying/ and
- choose Search for a Home in the Buyer's Tools
- then choose Resale Homes or
New Homes from the next page)
- Print the information
about your house from the Internet – include a picture of your house if one is available.
OR
- go to: http://realestate.altavista.com/
- choose Home Search in the Find a: box
- choose the state where you want to live and click
GO
- enter the city and choose the state. Make sure to include an appropriate price range for your house. Then click on the word
SEARCH
- select houses that are in your price range to look at by clicking on the top line which gives a general description of the house.
- Print the information
about your house from the Internet – include a picture of your house if one is available.
Without using the Internet....
If you want, you may use the Home Finder (from the Newspaper for local listings) to find a house that you can afford and that you'd like to buy.
Make sure to cut out the information, including a picture if it is available from the Home Finder and have it ready to turn in with your project.
Fill in the information below.
- Where is your house located (city and state)? ______________________
- What is the selling price? _____________________________
- List 5 interesting facts about your house.
- Since you'll be financing your house for 30 years, calculate 3 times the purchase price of the house you chose.
3 x _______________ = ____________________ 3 x purchase price of your house = total cost of your house
-
Since you'll be paying for your house for 30 years and making monthly house payments (with insurance and property taxes), how many monthly payments will you be making before the house is paid for (if you pay the minimum amount due each month)? ______
-
Since mortgage payments are usually always the same amount, divide your answer to problem 5 by your answer to problem 6 to calculate an approximate monthly mortgage payment with insurance and property taxes.
________________ / __________ = __________________ per month
3 x purchase price / # months in 30 years = monthly mortgage payment
-
Now use this information:
Your loan amount (price of the house you chose) = _________________
Interest Rate (for 30 years) = 7.91%
Term = 30 years
go to: http://realestate.yahoo.com/realestate/calculators/payment.html
Type in the information on this page and calculate your monthly payment using the mortgage calculator. Print the page that shows your monthly payment and keep it to hand in with your final project.
- What monthly payment did the Internet mortgage calculator give? ___________
- Add $25 for insurance and $250 for property taxes to your monthly payment (problem #9) to find out your total monthly mortgage payment. Total monthly mortgage payment = _________________
- Was the payment figured in problem #11 higher, lower, or almost the same as what you calculated in problem #7? __________________________
Do you think that our original calculation is a good approximation? Why or why not?
- How many monthly payments will you make in 30 years? _____________________
- Using the monthly complete mortgage payment that you calculated in problem #10 and the number of monthly payments you'll make from problem #12, calculate what you will end up paying for the house if you pay it off in 30 years. This will not include taxes & insurance.
Total cost of your house = ___________________________________________
(Monthly payment x number of months you'll pay until paid off)
