Team Project Part 3

1. Team Project Part 3 Michael Bair: Power Point Mindi Turner: Pros vs Cons of Owning a home, mortgage market Kylee Stafford: Home locations, Job opportunities Louisa Sevillano: Organization, Common points amongst each others projects

2. Kylee Stafford • Radiologist • Max annual salary cap (501k) • Max mortgage of home (5.3 mil) • Max monthly payment (11.6k) • Preference in area (Park City) • Possible home price (2.9 mil) • Down of 150k • Preferred loan (30 yr.) • Monthly payment (242k) • Monthly rate (3.5%)

3. Mindi Turner • Student Counselor • Max annual salary cap (56.6k) • Max mortgage of home (307k) • Max monthly payment (1,294.00) • Preference in area (Magna) • Possible home price (292k) • Down of 29.2k • Preferred loan (15 yr.) • Monthly payment (1788.00) • Monthly rate (2.75%)

4. Louisa Sevillano • Spanish Teacher • Max annual salary cap (58k) • Max mortgage of home (220k) • Max monthly payment (1.7k) • Preference in area (Nevada City, CA) • Possible home price (150k) • Down of 15k • Preferred loan (15 yr.) • Monthly payment (916.15) • Monthly rate (2.75%)

5. Michael Bair • Pharmacist • Max annual salary cap (160k) • Max mortgage of home (565.7k) • Max monthly payment (4.8k) • Preference in area (Cedar City, UT) • Possible home price (159.9k) • Down of 15.9k • Preferred loan (15 yr.) • Monthly payment (976.00) • Monthly rate (2.75%)

6. Pros Better short term Less responsibility Possibly cheaper due to the unnecessary upkeep demanded from home ownership Cons Non-returnable asset Builds no credit Less ownership freedom Third party involvement Apartment

7. Pros Building credit Home ownership freedom Possible returnable asset in home equity No third party involvment Cons Maintenance and upkeep Possible market risk More responsibility Home

8. Conclusion As a group it was decided that homeownership is the better decision. The pros of home ownership far out way the pros of renting. The cons of renting far out way the cons of home ownership. With a home there’s at least homeownership freedom and possible equity where as with renting it’s money lost.

9. Pros Cheaper monthly payments Flexible budget Cons Pay more in total Length of payments is doubled versus a 15 yr loan Much more paid in interest than in principle 30 yr loan

10. Pros Lower rates More money paid towards principle versus interest Paid off quicker In total, less money spent versus a 30 yr loan Cons Higher monthly payments Tighter budget 15 yr loan

11. Conclusion As a group it was mainly decided by popularity that a 15 year loan is better than a 30 year loan since you’ll be paying less. Also we found it beneficial to pay off quicker. Though it was understood that if we were under a financial budget than a 30 year loan was beneficial.

12. Home location Though we all wished to live in different areas it was agreed that it was cheaper to live outside of the larger city areas such as Salt Lake City, but we also understood that employment might demand localizing in a large city. If such was the case then the higher income may outweigh the cons of higher costs of living.

13. Mortgage Terms As a group we concluded that the interest rate of 2.75% was reasonable for the decided 15 year loan by popular demand. Though our rates were gathered from different financial institutions it seems that the market right now is as they call, “A buyers market.” The rates are respectively low at this point of time.

14. Final Conclusion Though we seek different jobs and desire to live in different places, this group project has helped us receive insights from others. Knowing the different possibilities that are out there and sharing ideas with one another allows us to better understand our goals. It has allowed us to form a concrete foundation for being able reach such goals.