math project
Section 5: Buy a House (Lesson 5.6) Name ______________________
Look in your Long Term Budget from part 1 of the project and find how much you have reserved for your Rent/Mortgage.
Long Term Budget Mortgage Payment $ ________________________________________
Let’s say interest rates for buying a home are around 5.5% on a 30 year loan. Determine a reasonable price range for a home that you can buy on your current budget.
N |
12(30) |
I% |
5.5 |
*PV |
|
PMT |
-( ) |
FV |
0 |
P/Y |
12 |
C/Y |
12 |
PMT: |
END BEGIN |
Calculator Directions: Apps, 1: Finance, 1: TVM Solver, Input values, Quit Apps, 1: Finance, 4: tvm_PV |
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How do interest rates affect your price range? You are going to determine a reasonable price range for your home with the same mortgage payment, but now interest rates have lowered to 4% on a 30 year loan.
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Price Range for your lovely home:
How big of a difference does the price of a house make? Look on Zillow.com or another real estate website. Look for homes in both price ranges in Frisco/McKinney. What are differences you can find in homes in these two price ranges?
Price Range #1 _____________________________ Price Range #2_________________________________
Address ___________________________________ Address______________________________________
Neighborhood______________________________ Neighborhood______________________________
Square Footage __________________________ Square Footage ________________________________
Number of bedrooms ________________________ Number of bedrooms ___________________________
Number of bathrooms _______________________ Number of bathrooms ___________________________
Number of family rooms _______________________ Number of family rooms ________________________
Game room, family room, media room, etc… Game room, family room, media room, etc…
What else does your house have? What else does your house have?
What kind of a difference does a double income make? This means you have to get married (or at least live with someone long-term). Take your income and double it. Use this number to find a new price range for a home
Long Term Budget Mortgage Payment * 2 $ ________________________________________
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What are some potential problems that could occur from depending on that second income?
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