Renting vs.

Owning
Project
Erica Haase

Name:

Renting vs. Owning Project: College Campus

College Living Part 1: Location
College:
CMU
Location:
Mt. Pleasant
Housing Location: On Campus
Off Campus
Housing Type:
Dorm
# of Bedrooms:
1
Individual Bedrooms
Shared Bedroom
# of Roommates: 4
Bath Attached:
Yes
No (Community/Shared)
Living Space:
Yes
No
Washer/Dryer:
Yes
No
Fireplace:
Yes
No
Parking:
Yes
No
Size: Parking Space
Other:
Parking Cost: $
150
Meal Plan Included:
Yes
No

Meal Plan Cost:

Included:

$9,088/year
unlimited & $150 flex/semester

Gym:
Internet:
Yes
Cable:
Yes
Computer Lab:
Additional Amenities:

Yes

No
No
No

Yes
No
Store, Laundry on every floor

Reasons you chose this College Housing: Best for

freshman

College Housing Part 2: The Payment

What Would Your Housing Payments Be Per Month? $9,088/year 758/month
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:

Address:

Helpful Resource: http://www.apartments.com/

15770 Lakeside Village Drive, Clinton Township, MI 48038

School District:

Chippewa

# of Bedrooms:
1
Style: Apartment
# of Baths: 1
Heated by: Gas
Square Footage: 900 ft
Washer/Dryer:
Fireplace:
Yes
Parking:
Yes
Size: Covered Parking
Parking Cost: $
Included Utilities:
Which:

Electric
Yes

No
No
No
Parking Space

Garage

Other:

included in rent
Yes
No
none

Additional Amenities:

gym, pool, sauna, hot tub

Reasons you chose this Apartment:

good for just starting out

Apartment Part 2: The Payment

What Would Your Rent Payments Be?

Renters Insurance:
$
Total Monthly Rent Payment:

$
845.00
$21.00
$
866.00

Renting vs. Owning Project: Buying a House

House Part 1: Finding the House
Income level you have been given:
$
52,490

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:

$2,864,145

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: $

119,900

Properties of the house you have chosen: Fill in the information below
Address: 8543 Quezon Avenue,
California City,CA
School District:
City

California

# of Bedrooms:

Style:
old but with modern
changes
#of Baths: 2
Type of siding:
Type of roof:
Heated by: Gas
Electric
Square footage: 1,535
Lot size: acres
Garage:
Yes
If Yes, Size:
Year built:

No
1 Car

2 Cars

3 Cars

Other:

1920

Fireplace:
Yes
No
Basement: Yes
No
List some of the reasons you chose this house:
Want to eventually move out to
California for my career. Itss something to start off with. It also has a walk in
closet and 12 security cameras.

House Part 2: The Payment

What Would Your Mortgage Payments Be?

429.00/month

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:

577.14

Market Value:
119,900-5%(5995)=
Mortgage
Amount:
113,905
Principle (1st Yr): 1,837.56
Interest (1st Yr):
5,008.12
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

15 years

20 years

25 years

30 years

842.54
871.37
900.75
930.70

690.24
720.62
751.72
783.54

601.23
633.12
665..88
699.48

543.80
577.14
611.74
646.74

Monthly Payments with a 15% down payment:

15%(5995)=17895
Market Value:
101,915
Interest (1st Yr):
Monthly
Payment
s

119,900

119,900-

Mortgage Amount:
Principle (1st Yr): 4499.75

5,493.01
15 years

20 years

25 years

30 years

4.0%

753.85

617.58

537.94

486.56

4.5%

779.64
805.94
832.73

644.76
672.59
701.06

566.48
595.78
625.85

516.39
547.10
578.66

5.0%
5.5%

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:
23,980
Length of Mortgage:

20%: Total Down Payment Amount:

30

Years

Monthly Payment: 544.61 Principle:

Interest:
$

1292.09
5243.35

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

$2,398

Abstract of Title

$120.00

$120.00

Attorney Fee

$250.00

$250.00

Documentation
Stamp
Processing Fee

.3% of Mortgage

$359.70

1.10% of Mortgage

$1199
$23,980

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:

$
$

45.79
119900
5490

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: $ 100
Now, compare your calculation at: http://www.zillow.com/mortgage-calculator/
Zillow Homeowners Insurance Estimate: $ 65

IMAGE OF HOMEOWNERS
INSURANCE GRAPH