It's time to head out and buy a house, including mortgages, closing costs, etc. The first thing you need to do is pick out a house. Click on this link to the ReMax Property finder page. (You may use another realtor page if you wish, as long as you are able to print out a picture, selling price and property taxes on a single page). You will be selecting a house in Lynchburg or a surrounding county. Therefore, choose the state of Virginia from the drop down menu and enter in the appropriate city or county where you are looking for a house. In the next section on that page, enter in a maximum price of $300,000 and a minimum price of $100,000. (you may enter other info as you are so moved) Please choose a house that has a picture to go with it's listing. Print out the picture and listing of your house.
Now we need a mortgage. You will get to choose your mortgage clicking on this Mortgage link Conforming Loans . Select the term of your mortgage and the number of points you want to pay (remember that this will be tied to your mortgage amount). To make your life simpler, choose a fixed term mortgage. Sorry, the "No Points, No Cost" loans are NOT an option for you this time! Choose a lender with their corresponding rate and points. Do NOT use the APR column, as this is in reference to something a little different than we are used to. Print out a copy of the page that has the table of lenders and rates. CIRCLE the mortgage you have chosen!
Make the following assumptions about other closing costs:
Design a spreadsheet that calculates and CLEARLY LABELS AND SUMMARIZES the following:
Also answer the following question and place it in your spreadsheet:
If your monthly payment can be no more than 30% of your gross monthly salary, what annual salary must you make in order for you to afford your house?
Save your spreadsheets in your student directory in the cim subdirectory with the name lastnamep1.xls. Also turn in a copy of your printouts.
DUE DATE: Friday, Feb 13, 2009 - Noon
(notice that the stuff you turn in is listed in red letters for your convenience)