Name:

Jessica Clouse

Renting vs. Owning Project: College Campus

College Living Part 1: Location
College:
Wayne State University
Location: Detroit Michigan
Housing Location: On Campus
Housing Type:
Resident Hall
# of Bedrooms:
single, double, and
triple
Shared Bedroom
# of Roommates: 2
Bath Attached:
Yes
Living Space:
Yes
Washer/Dryer:
No
Fireplace:
No
Parking:
No
Size: Parking Space
Parking Cost: Included in rent
Meal Plan Included:
Yes
Meal Plan Cost:
$50 a semester or
$250 a semester
Included: Jimmy Johns, Einsteins
Bagels,
Gold n Greens cafeteria
Gym:
No
Internet:
Yes
Cable:
Yes
Computer Lab:
No
Additional Amenities: Study rooms and
social lounges on each floor, Fully
equipped don-site laundry facilities,
staffed 24 hour reception desk with
One-Card access system, Academic,
social and personal programs and workshops, live in community director and
student resident assistance
Reasons you chose this College Housing: It is the cheapest on campus. They have
lots of things available and is a good starting house/apartment for being a
freshman. I will not be distracted by other cool things. It is nice and simple.
College Housing Part 2: The Payment
What Would Your Housing Payments Be Per Month? $1,844.66
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:
Helpful Resource: http://www.apartments.com/
Address: 19700 Masonic Blvd,
Roseville, MI 48066
School District:
Roseville High
School
# of Bedrooms:
1 bed room
Style: Clubhouse
# of Baths: 1
Heated by: Electric
Square Footage: 726 Sq Ft
Washer/Dryer:
Yes
Fireplace:
No
Parking:
Yes
Size: Parking Space
Parking Cost: $50
Included Utilities: Yes
Which:
Fridge, Disposal,
Dishwasher
Additional Amenities: Hot water boiler
heater, Surcharge supplies, eat in
kitchen, kitchen, range, breakfast
nook, fitness center, pool, ceiling fans,
high speed internet, air conditioning,
heater, smoke free cable ready,
balcony, yard, and storage units
Reasons you chose this Apartment:
They have a pool and fitness center,
you are allowed to have pets/dogs,
walk in closets, it is one of the
cheapest yet not run down places.
Apartment Part 2: The Payment
What Would Your Rent Payments Be? $760
Renters Insurance:
$21.00
Total Monthly Rent Payment:
$791.00

Renting vs. Owning Project: Buying a House

House Part 1: Finding the House
Income level you have been given: $91,250
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: $383,703
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: $85,000
Properties of the house you have chosen: Fill in the information below
Address: 21816 Rosedale St, Saint Clair
Shores Michigan
School District:
South Lake High
School
# of Bedrooms:
3
Style: Ranch
#of Baths: 1
Type of siding:
Shingles
Type of roof: Panels
Heated by:
gas
Square footage: 931
Lot size: 3,920 square feet
Garage:
Yes
If Yes, Size:
1 Car
Year built: 1964
Fireplace:
Yes
Basement:
No
List some of the reasons you chose this house: It is small and cozy, it is close to
home, and it has a garage in the yard and has a deck in the back for parties or
barbequing. It comes with a dishwasher, and heat. It is in the middle of Saint Clair
Shores, so all of stores will be close to it.
House Part 2: The Payment
What Would Your Mortgage Payments Be? $305/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:

$362/month

Market Value:
$ 85,000 (5%)
= 4250
Mortgage
Amount:
$80,750
Principle (1st Yr):
1,422.00
Interest (1st Yr): $3,204.12
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

15 years

20 years

25 years

30 years

$597
$618
$639
$660

$489
$511
$533
$555

$426
$449
$472
$496

$386
$409
$433
$458

Monthly Payments with a 15% down payment:

$366/month

Market Value:
%85,000-(15%) = $12750
Amount:$72250
Principle (1st Yr): $1,165.55
st
(1 Yr): $3,227.41
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

Mortgage
Interest

15 years

20 years

25 years

30 years

$534
$553
$571
$590

$438
$457
$477
$497

$381
$402
$422
$444

$345
$366
$388
$410

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:
Length of Mortgage:

20%: Total Down Payment Amount:

30,600

30 Years

Monthly Payment: Principle:

Interest:

$
$

$412.17
$1672.71

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

$3,060

Abstract of Title

$120.00

$120.00

Attorney Fee

$250.00

$250.00

Documentation
Stamp
Processing Fee

.3% of Mortgage

$459

1.10% of Mortgage

$1,683
$17,000

Total Closing Costs

20% of total amount

of house

House Part 4: Real Estate Taxes

Combined Millage of county, municipal and school:
$9,548
Assessed Value of Home:
$5,329
Yearly Real Estate Tax:
$4,219
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: $305/month
Now, compare your calculation at: http://www.zillow.com/mortgage-calculator/
Zillow
Insurance Estimate:

Homeowners
$454/month