Name:

Raven Clark

Renting vs. Owning Project: College Campus

College Living Part 1: Location
College: CMU
Location: Mount Pleasant, Michigan
Housing Location: On Campus
Housing Type: Apartment
# of Bedrooms:

1-2-4

Individual Bedrooms
# of Roommates: 2/3
Bath Attached:
Yes
Living Space:
Yes
Washer/Dryer:
Yes
Fireplace:
No
Parking:
Yes
Size: Parking lots near front
Parking Cost: $
150
Meal Plan Included:
Yes
Meal Plan Cost:
$4544 unlimited
Gym:
Yes
Internet:
Yes
Cable:
Yes
Computer Lab:
Yes
Additional Amenities: 400+ student
organizations
Reasons you chose this
College Housing: It is a far distance
from home and it would be a good
experience to live on campus and be
on my own.

College Housing Part 2: The Payment

What Would Your Housing Payments Be Per Month? $394

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: 4300 Collegiate Way
School District:
Mount Pleasant
# of Bedrooms:

2-4

Style: Village
# of Baths: 2-4
Heated by:
Electric
Square Footage: 1380sq ft
Washer/Dryer:
Yes
Fireplace:
Parking:
Yes
Size:
Parking Space
Garage
Parking Cost: $150

No

Included Utilities: Yes

Which:Cable, washer, dryer, water.
Additional Amenities:Tv, private
bathrooms, leather furniture package,
storage.
Reasons you chose this Apartment: The
price seemed right for the room! It
seems like a really good room and you
do get a lot that is included!
Apartment Part 2: The Payment
What Would Your Rent Payments Be?
Renters Insurance:
$
Total Monthly Rent Payment:

$394
$21.00
$415

Renting vs. Owning Project: Buying a House

House Part 1: Finding the House
Income level you have been given:
$ $158,876
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:

$990 a month

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: $$ 154,900
house you have chosen: Fill in the information below
Address:35244 Silver Maple

Properties of the

School District: Fraser

# of Bedrooms:

Style: end condo

#of Baths: 2
Type of siding: Doesnt Say
Type of roof: Doesnt Say
Heated by:
Square footage: 1453

Electric

Garage:
Yes
If Yes, Size:

2 Cars
Other:

Year built:2004
Fireplace:
Yes
Basement: Yes
List some of the reasons you chose this house: Good location, very peaceful, good
size, 2 bathrooms, garage, and good school district.

House Part 2: The Payment

What Would Your Mortgage Payments Be? $784.86

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:
$154,900
$784.86
Interest (1st Yr): $645
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

$831.54

Mortgage Amount:
Principle (1 Yr): $832
st

15 years

20 years

25 years

30 years

1145.7
8
1184.7
5
1224.9
4
1265.6
6

938.66

817.62

739.52

979.97

860.98

784.86

1022.2
7
1065.6
4

905.53

831.54

651.22

879.51

Monthly Payments with a 15% down payment: 660.42

Market Value:

154,900

(1st Yr): 660

Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

Principle (1st Yr): 880

Mortgage Amount:660.42:
Interest

15 years

20 years

25 years

30 years

1479.3
8
1529.9
9
1581.5
9
1634.1
7

1211.9
6
1265.3
0
1319.9
1
1375.7
7

1055.6
7
1111.6
6
1169.1
8
1228.1
7

954.83
1013.67
1073.64
1335.58

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

%: Total Down Payment Amount:

Length of Mortgage:

15Years

Monthly Payment: Principle:

Interest:

$1634.17
$2500.00

$232.25

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

$265

Abstract of Title

$120.00

$120.00

Attorney Fee

$250.00

$250.00

Documentation
Stamp
Processing Fee

.3% of Mortgage

$361

1.10% of Mortgage

$65
$4551

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:

$39.89
$154900
$57.89

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: $784.86
Now, compare your calculation at: http://www.zillow.com/mortgage-calculator/
5

Zillow Homeowners Insurance Estimate: $859