Buy A Home?

1. Buy A Home? Math 1050 Group assignment Joseph Robinson

2. Buying A Home Deciding whether to buy a home takes a lot of time and planning. Here are a few thing to consider when buying a home. Should I buy or rent? How much can I afford? What expenses come with a home? Where should I buy a home? How long will I be paying for my home? How do I get the best rate? What’s are the pros and cons of a 15yr loan vs. a 30yr loan? What will my monthly payments be? How much interest will I be paying? How much money should I put down on a home?

3. Rent or Buy Are you ready to settle down? Well then buying a home isn’t a bad idea; however, you may want to consider renting until your completely ready for this enormous obligation. • Buying a home is a great way to invest your money if your ready and its done right. • Renting until you can save enough money to put a good down payment on a home will save you money in the long run. • Don’t rush any decisions. Carefully plan before buying your home.

4. How Much Can You Afford When you decide you want to buy a home, you can go to the bank and qualify for a home loan. Banks won’t normally lend a home loan when the payments exceed 22% of your monthly income. This can be used as a reference to figure out home much you can afford. Figure out 20% of your monthly income. The max amount you would want to spend on your home is 360 times 20% of your monthly income. For example, if I made $40,000 a year my monthly income would be $3333. Twenty percent of that ($666.67) would be your max monthly payment you would want to spend on a home. To figure out the amount of a home you can afford without exceeding that monthly limit, multiply your monthly limit by 360. The max amount I would want to spend on a home is $240,000.

5. 15 Or 30 When taking a loan out for a home there are two different loans you need to consider. A 15 or a 30 year loan. 30 year loan is twice as long and enables your monthly payments to be much lower 30 year loan allows you to afford a more expensive home. 15 year loan normally comes with a lower interest rate. 15 year loan your locked into the loan for half as long Although your payments are higher you save a lot more money after you pay off your loan If you can afford it, a 15 year loan would be more a benefit to yourself. If your worried about being strained financially its best to stick with a 30 year loan. You can always make extra payments towards your low to help save you money later.

6. Other Useful Facts Putting 20% or more down will save you from having to buy Private Mortgage Insurance (PMI) Get a Real Estate Agent. Normally commission is paid threw they seller, not the buyer. Be prepared to pay for closing costs and property tax. Real Estate is a tangible asset that is protected from inflation. Mortgage insurance is generally tax deductable. REMEMBER

7. THANK YOU