Home Sweet

Home

By Anna Earhart and Erving Peña

30-Year• $178,000 to

spend• 4% interest

15-Year• $119,000 to

spend• 3.5%

interest

Rent• No mortgage• No equity • No repairs

•

http://qrc.depaul.edu/StudyGuide2009/Notes/Savings%20Accounts/Compound%20Interest.htm

There are calculators that will do the math for you, but it is helpful to remember the formula so you can double check figures with confidence no matter where you are.

http://www.mshc.comhttp://www.bankrate.comhttp://mortgage-x.com/calculators

MLS#1163452

30-year mortgage

I love it- Payments go mostly toward interest for first 15 years

- Total interest will be almost as much as the sticker price of the house

15-year mortgage

MLS#1171354

-I don’t love it

-Looks like it may need some repairs

-Interest rate is lower

-Payments always go mostly toward principal so equity builds quickly

-Can sell or rent out if income goes up

A 2-bedroom unit in a 4-plex

Renting

-No big repair costs

-Can take my timeTo find a home I love AND can afford to buy using a 15-year mortgage

-Makes it easy to move ifI need to change locations

-I don’t love it

-I may be tempted to spend “extra” money instead of saving toward house

-None of rent builds equity

Remember that the purchase of a property may be an investment as well. So it the property is purchased to be rented out, or to be developed at a further date, I would be wise to consider what would work best for the investor.

Attached are the Project findings for Anna Earhart and Erving Peña.

Credits

Anna Earhart • Outline, Slides

Erving Pena

• Editing, Slides