Traven Bussell

Randall Kammerman, Instructor

Personal Finance

November 5, 2017

House Assignment

I shall compare the purchasing of two different houses. I will just be using the median

prices then calculating them into a 15 and a 30 year plan for purchasing a house within the states

of Utah and Tennessee.

Utah house, the median price for a house in the state of Utah is $329,500. For a 15 year

plan, the monthly payment for such a house would be $1,830. As for a 30 year payment it would

be $915 a month. This difference leads to a longer payment along with more interests you would

have to pay. Those calculations are not including the interest rates of 3.375% for a 15 year loan

and 3.625% for a 30 year loan. The property tax in the state of Utah 1.75%. Utah has plenty of

shopping throughout the state is it is much more urban than the state of Tennessee with a much

larger population. The crime rate in the state of Utah is highest in the nation in many counties.

The schools in the state of Utah are very highly rated and successful. The schools of the state of

Utah are 37 in the nation. The people in Utah are generally very friendly. In Utah the conditions

are higher than most of Tennessee. You have to deal with the Mormons constantly knocking on

your door if you live in Utah.

Tennessee house, the median price for a house in the state of Tennessee is $225,000 ,

much cheaper than the state of Utah in that regard. For a 15 year plan it would be $1,250 a month

while a 30 year plan would be $625 a month. The 30 year plan is half the cost a month before
interest to pay off which leads to a longer and more expensive payment. The same rates in Utah

apply for my bank, USAA, in the state of Tennessee. The property tax in the state of Tennessee

is 25% of the market value for a residential home. From my experiences in Tennessee, the vast

majority of the state is rural with several larger cities. Thus in most areas shopping is low. Yet at

the same time the crime rate is highest per capita in the nation. The school rating average in the

nation is 42 which means overall Tennessee is a much worse state to live in. But you can buy

land and property much cheaper than in Utah and still have the forests and mountains that made

the Great Smoky area famous.