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Guide to Housing Mortgages and Loan Terms
- 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 be earn • 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.