The document contains information about housing mortgages including the total amount paid for a property over 15 and 30 year terms, the total interest paid over the life of the loans, monthly payment amounts, and how much money can be saved by paying an extra $100 or $500 per month towards the principal. It also includes an analysis of whether the author, a lawyer making $131,000 per year, could afford the monthly payments for a 15 or 30 year mortgage based on common guidelines for spending percentages.

1. HOUSING MORTGAGES
Alessandra Sher
http://www.homecreat.com/category/house/mediterranean-
house/

2. THE TOTAL AMOUNT PAID FOR THE PROPERTY
Total amount paid
$350,000.00
$300,000.00
$250,000.00
$200,000.00
Total amount paid
$150,000.00
$100,000.00
$50,000.00
$0.00
15 years 30 years

3. THE TOTAL AMOUNT OF INTEREST PAID BY THE
TIME YOU’VE PAID OFF YOUR LOAN
Total interest paid
$160,000.00
$140,000.00
$120,000.00
$100,000.00
Total interest paid
$80,000.00
$60,000.00
$40,000.00
$20,000.00
$0.00
15 years 30 years

4. HOW MUCH YOUR MONTHLY PAYMENTS ADD
UP TO
Monthly payment
$1,400.00
$1,200.00
$1,000.00
$800.00
Monthly payment
$600.00
$400.00
$200.00
$0.00
15 years 30 years

5. HOW MUCH MONEY YOU CAN SAVE BY PAYING
AN EXTRA 100 PER MONTH
Save $100
$40,000.00
$35,000.00
$30,000.00
$25,000.00
Save $100
$20,000.00
$15,000.00
$10,000.00
$5,000.00
$0.00
15 years 30 years

6. HOW MUCH MONEY YOU CAN SAVE BY PAYING
AN EXTRA 500 PER MONTH
Save $500
$450,000.00
$400,000.00
$350,000.00
$300,000.00
$250,000.00
$500
$200,000.00
$150,000.00
$100,000.00
$50,000.00
$0.00
15 years 30 years

7. WILL I BE ABLE TO AFFORD THIS??
 Job: Lawyer
 Salary: $131000
 30 years
 15years
Mortgage payment expense
(1245.5/10917) *100 = 11.4%
Total fixed payment
($1245.5 + 1329.67)/$10917= 24%
30years
Mortgage payment expense
845.49/10917*100 = 7.74%
Total Fixed payment
($845.49 + 1329.67)/10917 = 20%

8. ANALYSIS
• Can you afford the monthly payment for a 15 year mortgage? A 30 year
mortgage?
I am able to afford both loans as my Mortgage payment expense is 11.4%
and my total fixed payment 24%
• If you do not qualify for the loans, determine what you could do to change
this.
- Make more money, get a better job
- Increase length of loan
• If you have the choice, which one is better?
Well with my ideal career choice I would try to earn more money and get the
15 years loan
• Is it better to take out a 15 or 30 year mortgage? Explain why. Refer to you
pro/con list from the first part of the activity. It depends on the person, if
they can afford to pay more monthly, then it would be wise to get a 15
year loan. But if you cant afford to pay that much per month, then a 30
year loan would be better. However with a 30 year loan, you end up
paying more with interest.