Name: Isabel Pirrone

Renting vs. Owning Project: College Campus

College Living Part 1: Location
College:
Central Michigan
Location: Barnes Hall, Mount

Pleasant
Housing Location:
Housing Type:

On Campus

# of Bedrooms:

Shared Bedroom
# of Roommates: 1
Bath Attached:

Yes

Living Space:
Yes
Washer/Dryer:
Yes
Fireplace: No
Parking: Yes
Size: Parking Lot
Parking Cost: $150 for year
Meal Plan Included: Yes
Meal Plan Cost:
$
Gym:
No
Internet: Yes
Cable:
Yes
Computer Lab:
Yes
Additional Amenities: Phone, Dressers
Reasons you chose this
College Housing: It was one of the
cheaper options for Central.
College Housing Part 2: The
Payment
What Would Your Housing Payments Be Per Month? $907
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: 30001 23 Mile Rd, New

Baltimore, MI 48047
School District:
# of Bedrooms:

Anchor Bay
2

Style:
# of Baths: 2
Heated by: Electric
Square Footage: 952 sq ft
Washer/Dryer:
Yes
Fireplace: No
Parking: Yes
Size: Surface Lot
Parking Cost: None
Included Utilities: Yes
Which:
Laundry, Dishwasher,

Fridge, Disposal, Sewer

Reasons you chose this Apartment: It

looks nice. One of the cheaper options
and it has good reviews. It is in a
decent location too.
Other Costs: $200 first time expense

for dogs and cats. $20 per dog and

cat monthly. $99 security deposit.
$50 Application fee.

Apartment Part 2: The Payment

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

$
$650+$20 for cat +$20 for dog
$21.00
$
$711

Renting vs. Owning Project: Buying a House

House Part 1: Finding the House
Income level you have been given:
$10,000 salary

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:

$1,160,813

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: $59,900
Properties of the house you have chosen: Fill in the information below

Address:156 Hubbard St,Mount Clemens, MI 48043

School District:
Mount Clemens
# of Bedrooms:
2
#of Baths: 1
Heated by: Gas
Square footage: 1,812
Lot size: 4,365
sq feet
Garage:
No
Fireplace:
Yes
Basement: Yes
List some of the reasons you chose this house: it seemed
a relatively cheap price for the quality and its really nice inside.
House Part 2: The Payment

What Would Your Mortgage Payments Be?

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:
Market Value: 59,900 Mortgage Amount: 5,690 Principles (1st Yr): 2,995 Interest (1st
Yr):
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

15 years

20 years

25 years

30 years

$420.92
$435.32
$473.69
$450.00

$344.83
$360.01
$395.31
$375.55

$300.37
$316.30
$350.17
$332.66

$271.67
$288.33
$321.56
$305.48

50 years

Monthly Payments with a 15% down payment:

Mortgage Amount: 50,915 Principles (1st Yr):

Market Value:
59,900
8,985 Interest (1st Yr):
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

15 years

20 years

25 years

30 years

$376.61
$389.50
$402.63
$416.02

$308.53
$322.11
$336.02
$350.24

$268.75
$283.00
$297.64
$312.66

$243.08
$257.98
$273.32
$289.09

50 years

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:

15%

Length of Mortgage:

Total Down Payment Amount:

$8,985

25 Years

Monthly Payment: Principle:

Interest:

$8,985
$

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

$1,018

Abstract of Title

$120.00

$120.00

Attorney Fee

$250.00

$250.00

Documentation
Stamp
Processing Fee

.3% of Mortgage

$1,527

1.10% of Mortgage

$560
$11,980

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:

$47.17
$59,900
$13,258

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: $179.7
Now, compare your calculation at: http://www.zillow.com/mortgage-calculator/
Zillow Estimate:
$458
Homeowners Insurance:
$67