Name:

Renting vs. Owning Project: College Campus

College Living Part 1: Location
College:

Central MI

Location: Detroit
Housing Location: On Campus
of
Campus
Housing Type:
Residence Hall
# of Bedrooms:
Individual Bedrooms
Shared
Bedroom
# of Roommates:
Bath Attached:
Yes
No
(Community/Shared)
Living Space:
Yes
No
Washer/Dryer:
Yes
No
Parking:
Yes
No
Type: Parking Space
Other:
Parking Cost: $
Meal Plan Included:
Yes
No
Meal Plan Cost:
$4,544
Included:
Gym:

Yes
No
Internet:
Yes
No
Cable:
Yes
No
Computer Lab:
Yes
No
Additional Amenities:
Reasons you chose this College
Housing:
It looks like a nice school
and maybe Id like to go here for my
bachelors in psychology.

College Housing Part 2: The Payment

What Would Your Housing Payments Be Per Month? $800
Renting vs. Owning Project: Renting an Apartment
Apartment Part 1: Finding the Apartment
Properties of the apartment you have chosen: Fill in the information below:
Helpful Resource: http://www.apartments.com/
Address:25005 Lawrence Ave
School District:

private schools

# of Bedrooms:

Style:
# of Baths: 1
Heated by: Gas
Electric
Square Footage:
Washer/Dryer:
Yes
No
Fireplace:
Yes
No
Parking:
Yes
No
Size: Covered Parking Parking Space
Parking Cost: $

Garage

Other:

$10

Included Utilities: Yes

Which:
water, heat
Additional Amenities:
allowed,

No
1 pet

Reasons you chose this Apartment: it

has a nice look to it and it has all of the
things I would need. Its also close to

CMU.
Apartment Part 2: The Payment
What Would Your Rent Payments Be?
Renters Insurance:
$
Total Monthly Rent Payment:

$
155
$21.00
$
620

Renting vs. Owning Project: Buying a House

House Part 1: Finding the House
Income level you have been given:
$69,280
You will have to go to the following website in order to determine how much you are
able to spend on your house. You can select a house that is less than the maximum
value, but you may not select a home that is over the maximum value given to you
by the calculator.
www.interest.com/content/calculators/aford-borrow.asp
Maximum value that your house can be:

$282,529

You will use the following websites in order to research housing listings. The best
website is listed.
www.remax.com
www.zillow.com
Market value of the house you have chosen: $95,504
Properties of the house you have chosen: Fill in the information below
Address: 14010 Kingston St
School District: Berkeley High

# of Bedrooms:

Style: bungalow
#of Baths: 2
Type of siding:
Type of roof: asphalt
Heated by: Gas
Square footage:
Lot size:
Garage:
Yes
If Yes, Size:

Electric
No
1 Car

2 Cars

3 Cars

Other:

Year built: 1948

Fireplace:
Yes
No
Basement: Yes
No
List some of the reasons you chose this house:
its a nice house and I know the
neighborhood and it is nice, it is also a good enough price for what Id like to get.

House Part 2: The Payment

Now that we know what the total cost of our house is, we are going to determine
what our monthly payments will be based on diferent interest rates, down
payments, and terms. Use the following website to determine the mortgage
monthly payment.

http://www.interest.com/content/calculators/new/armvsFixed.asp
http://www.interest.com/mortgage/calculators/mortgage-calculator/

Be sure to locate the Amortization Table and change to monthly to find payment
amounts
5% down Payment Amount: $141,264.50
Market Value:
$95,504
Mortgage Amount:
$141,264.50
Principle (Monthly): $186.02
Interest (Monthly): $529.74
Principle (1st Yr): $1,316.91
Interest (1st Yr):
$3,693.45
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

15 years
Fixed

20 years
Fixed

30 years
Fixed

$1,044.
92
$1.080.
67
$1,117.
11
$1,154.
25

$856.0
4
$893.7
1
$932.2
9
$971.7
4

$674.72
$715.77
$758.34
$802.09

15% down Payment Amount: $42,379.35

Market Value:
$95,504
Mortgage Amount: $240,149.65
Principle (Monthly): $137.60
Interest (Monthly):
$800.50
Principle (1st Yr): $972.91
Interest (1st Yr): $5,579.13
Monthly
Payment

15 years
Fixed

20 years
Fixed

30 years
Fixed

s
4.0%
4.5%
5.0%
5.5%

$1,776.
36
$1,837.
13
$1,899.
09
$1,962.
23

$1,455.
26
$1,519.
31
$1,584.
88
$1,651.
96

$1,146.51
$1,216.80
$1,289.18
$1,363.55

Now that you have looked at some diferent monthly payments available, select an
option USING ONLY THE 5.5% interest rate, as this is the closest to the current
mortgage rate right now.
Down Payment:
Length of Mortgage:

20%
30

Monthly Payment: Principle:

Interest:

Total Down Payment Amount: $56,505.80

Years (Fixed)
$247.40
$1,035.94

House Part 3: Closing Costs

With all purchases of homes there are closing costs involved. We are going to use
the following table to calculate the closing costs. Snip you closing costs and attach
it below.
https://smartasset.com/mortgage/closing-costs
House Part 4: Real Estate Taxes
Combined Millage of county, municipal and school:
$
Assessed Value of Home:
$282,529
Yearly Real Estate Tax:
$11,053

39.12

https://treas-secure.state.mi.us/ptestimator/ptestimator.asp

House Part 5: Home Owners Insurance

You will also have to purchase house insurance, which costs a yearly average of 0.0025 of the
purchase price of your home. (This is the minimum housing insurance, which does not include
earthquake coverage.)
Calculate your monthly house insurance: $706.32/YR 58.86/Month
Now, compare your calculation at: http://www.zillow.com/mortgage-calculator/
5

Zillow Homeowners Insurance Estimate: $67