Renting vs.

Owning Project: College Campus

College Living Part 1: Location
College:
CMU
Location:
Mount Pleasant
Housing Location: On Campus
Off Campus
Housing Type:
Dorm
# of Bedrooms:
1
Individual Bedrooms
Shared Bedroom
# of Roommates: 4
Bath Attached:
Yes
No (Community/Shared)
Living Space:
Yes
No
Washer/Dryer:
Yes
No
Fireplace:
Yes
No
Parking:
Yes
No

Size: Parking Space

other:_________

Parking Cost: $150.00

Meal Plan Included:
Yes
No
Meal Plan Cost:
$9,880/year
Included:
Unlimited $150 flex/semester
Gym:
Internet:
Cable:

Yes
Yes
Yes

No
No
No

Computer Lab:
Additional Amenities:

Yes
No
store, laundry pm every floor

Reasons you chose this College Housing: Best for

freshman
College Housing Part 2: The Payment
What Would Your Housing Payments Be Per Month? $

9,088/ year

758/month

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: 15770 Lakeside Village Drive, Clinton
Township, MI 48038

School District:

Chippewa

# of Bedrooms:

Style:
appartment
# of Baths: 1
Heated by: Gas
Square Footage:
Washer/Dryer:
No
Fireplace:
Yes
Parking:
Yes
Size: Covered Parking
Space
Garage
Parking Cost: $
Included Utilities: Yes
Which:
none

Electric
Yes
No
No
Parking
Other:
included in rent
No

Additional Amenities: gym, pool, sauna,

hot tub
Reasons you chose this Apartment:
location and amenities

Apartment Part 2: The Payment

What Would Your Rent Payments Be?
Renters Insurance:
$
Total Monthly Rent Payment:

$
845.00
$21.00
$
866.00

Renting vs. Owning Project: Buying a House

House Part 1: Finding the House
Income level you have been given:
$
$61,560

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/afford-borrow.asp
Maximum value that your house can be:

233,332

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: $
Properties of the house you have chosen: Fill in the information below
Address:1010 front St APT C202
Lahaina, HI 96761
School District:
schools

Lahania public

# of Bedrooms:

Style: studio
#of Baths: 1
Type of siding:
wood
Type of roof: sheet shingle
Heated by: Gas
Square footage: 324
Lot size:

324

Electric

IMAGE
3

Garage:
Yes
No
If Yes, Size:
1 Car
2 Cars
parking
Year built:
1979
Fireplace:
Yes
No
Basement: Yes
No
List some of the reasons you chose this house:

3 Cars

Other:

only house in my price range

House Part 2: The Payment

What Would Your Mortgage Payments Be?

489.00/ month

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 different 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
Monthly Payments with a 5% down payment:

657.04

Market Value:
136,500-(5%) =6825
Amount:
129,675
Principle (1st Yr): $2,091
$5,792.58
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

15 years

20 years

25 years

30 years

959.19
992.01
1025.4
6
1059.5
5

785.80
820.39
855.80

684.47
720.78
758.07

619.09
657.04
696.12

892.02

796.32

736.28

Monthly Payments with a 15% down payment:

Market Value:
116,025
Interest (1st Yr):
Monthly
Payment

Mortgage
Interest (1st Yr):

587.88

136,500-(15%) =20,475
Mortgage Amount:
Principle (1st Yr): 1871.72
5182.84
15 years

20 years

25 years

30 years

s
4.0%
4.5%
5.0%
5.5%

858.22
887.58
917.52
948.02

703.09
734.03
765.71
798.12

612.42
644.90
678.27
712.50

553.92
587.88
622.85
658.78

Now that you have looked at some different 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:
27,300
Length of Mortgage:

20
30

%: Total Down Payment Amount:

Years

Monthly Payment:620.03 Principle:

Interest:
$

$
1,471.07
7440.36

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
Description

Cost

Your Cost

Credit Report

$65.00

$65.00

Loan Organization

2% of mortgage

$2730

Abstract of Title

$120.00

$120.00

Attorney Fee

$250.00

$250.00

Documentation
Stamp
Processing Fee

.3% of Mortgage

$4095

1.10% of Mortgage

$1501
$27300

Total Closing Costs

20% of total amount

of house

House Part 4: Real Estate Taxes

Combined Millage of county, municipal and school:
Assessed Value of Home:
$
Yearly Real Estate Tax:

$
n/a
136,500
$
236

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 0.3% of the
purchase price of your home. (This is the minimum housing insurance, which does not include
earthquake coverage.)
Calculate your monthly house insurance: $ 69/month
Now, compare your calculation at:
Zillow Homeowners Insurance Estimate: $ 67/month