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Home Buying Case

Study
Rebecca Correia
Meet The Smiths
Henry & Angela Newly Weds and are currently renting the
basement from a relative.
Occupations: Police officer & Dental Ast.
Ages: 25 &24
Annual Income: $60,000
Rent: $750
Student Debt: $3,500
Reimbursement: $2,000
Other debts: $0 Cars paid off no credit card balance
Total Savings: $5,500+$10,000 (Wedding present)
Credit score: 720
Currently living : Salt Lake City ,UT
Area of choice: Ogden, UT
Agenda: They would like a house closer to school, have a
Family & to live in 10-15 years.
Financial Goals
Short term: Long Term:
1.Pay off school debt 1. Finish school
2.Save money for a down 2. School debts paid
payment 2. Have a good retirement fund
3.Become a Homeowner 3. Be invested in great stocks
4.Start investing & Start a Family
$742
Location: 2740
Madison Ave APT
Rental Price: 2,Ogden,84403
$495 663 sqft
$50 flat rate for
utilities
1 bed
1 bath
Pet friendly (only
Specifics)
Shorter commute:
5 mins
Biking: 12 mins
Traffic: Moderate
Low maintenance
Save on gas
Extra money: $225
Schools: Weber school District or
Unified School District ( Mound Fort
Junior High School & James Madison
Elementary School, Ogden High
School)
Ranked:
505/527 Elementary
195/208 Middle
107/126 Highschool
Crime Rate: 37/ 100
Teacher caught this year for sexually
abusing Jr. high student. Feb 7,2017
Not a lot of room
l e f a m i l y 2644 Van Buren
Sing Ave,Ogden, UT 84401
Home 6,969 sqft
e : 1 4 9 , 9 00
Pric 3 beds
2 bath
Built in 1920 Older
Recently remodeled
In Historic district
Home value Expected
to rise 3.8%
Walking score: 61
Commute is Short:3
mins to Weber State
University
Low traffic
Owned last 2003
Same Schools
Crime Rate
Older home
More Expensive Insurance
Appraisal value less than price
Price $229,00

1134 Shepard Ln, Farmington, UT 84025


3 beds, 2 baths 1,461 sqft
Has a Mother in-laws apartment
Backyard is next to golf course
commute: is 19 mins
Good Area
Schools ranked 7/10 for Elementary & Middle School
High School 8/10
Liveability 82/100
Top 100 places to live
Low Crime rate
Median appraised price $229,000
High graduation rate
Above national average for Crime education, housing &
employment.
Property Increase 4% next year
built in 1984
Top of their Budget
Analysis
Rental: save for a
bigger down
payment

Home 1: Pay in 15 Home 2: Pay at the top of their


years low financial Budget with being Better
struggle investment for Family in the
future. Can still qualify for 15 year
mortgage.
Home #2
$229,000

Schools are Above average


financially good investment 15 year loan
30 year Loan
loan amount: $184,000 5.2%

Down Payment: $46,000


$1,474.30/ month including
Interest 5.0% interest, Principal, HOA fees,
$1,187/ month including interest, Property Tax, Homeowners
Insurance & Private Mortgage
Principal
Insurance
HOA fees, Property Tax,
Homeowners Insurance & Private Total interest paid:
Mortgage Insurance $81,374.38
Total interest paid: $171,590.64
Total Payment: 355,590.64 Total Payment: $265,374.38
750+742=$1492

Extra: $17.70 not


including

Savings Deposit
Per check

Extra: $354.70
Could be Invested
every month
Year Starting Annual Total Interest Total Interest End

Amount Contribution Contributions Earned Earned Balance

2017 $353 $4,236 $4,236 $112 $112 $4,701

2018 $353 $4,236 $8,472 $325 $437 $9,262

2019 $353 $4,236 $12,708 $549 $986 $14,047

2020 $353 $4,236 $16,944 $784 $1,770 $19,067

2021 $353 $4,236 $21,180 $1,030 $2,800 $24,333

2022 $353 $4,236 $25,416 $1,288 $4,088 $29,857

2023 $35 $4,236 $29,652 $1,560 $5,648 $35,653

2024 $353 $4,236 $33,888 $1,844 $7,491 $41,732


025 $353 $4,236 $38,124 $2,142 $9,634 $48,111

2026 $353 $4,236 $42,360 $2,455 $12,089 $54,802

2027 $353 $4,236 $46,596 $2,784 $14,873 $61,822

2028 $353 $4,236 $50,832 $3,128 $18,001 $69,186

2029 $353 $4,236 $55,068 $3,489 $21,490 $76,911

2030 $353 $4,236 $59,304 $3,868 $25,359 $85,016

2031 $353 $4,236 $63,540 $4,266 $29,625 $93,518


Total Invested: $63,540

Starting Amount:$353

Total Contributions:$63,540

Interest Earned: $29,625


$1472
8% 15years
2017 $1,472 $17,664 $17,664 $784 $784 $19,920

2031 $1,472 $17,664 $264,960 $38,668 $247,804 $514,236


Amount Invested: $1472

Total Contributions: $264,960

Total Interest Earned: $247,804


30 Year Loan

Fixed Interest Rate 4.25%

15 Year Loan

Fixed Interest Rate 4.75%

Down Payment:

$230,000 * 20% = $46,000

5%= 11,500

Closing cost: $4,000-$3,000


Rentings cheaper
Homes investment
not for renting
loan to value: 80%
for the homes
amoration:
bibliography
http://goldclienthub.com/themanalapancontractor/files/2015/03/Dollarphotoclub_595561 96.jpg

https://www.google.com/search?q=mr+and+mrs&tbm=isch&source=lnms&sa=X&ved=0ahUKEwjikIO4oO7SAhUPymMKHRLGC5cQ_AUIxAEoAQ&biw=1680&bih=895#tbm=isch&q=happy+couple&
*&imgrc=m_DAGEU7ou29PM:

https://www.google.com/search?q=mr+and+mrs&tbm=isch&source=lnms&sa=X&ved=0ahUKEwjikIO4oO7SAhUPymMKHRLGC5cQ_AUIxAEoAQ&biw=1680&bih=895#tbm=isch&q=budget&*&imgrc=h
Gp1eT2Lqhpng

https://smartasset.com/investing/investment-calculator#JLIVwBMdEd

M:

https://www.schooldigger.com/go/UT/schools/0072001295/school.aspx