Process
The following is the
process you will follow to determine the house you will buy. There a few constraints - first, you can
afford a monthly mortgage payment of $3,000.
Second, you will put down 10% of the house’s price as a down-payment.
1.
Review some home
buying information from the U.S Department Housing and Urban Development’s web
site: HUD
2.
Use the site Realtor.com to view and compare homes where
you want to live and the homes contain features you want.
3.
Once you have
found some homes you like use the site Claritas and Yahoo Neighborhoods to
access the neighborhood of the homes – what types of families live in these neighborhoods?
4.
Use the web
site Bankrate to determine if you can afford the homes based
on a 30 year mortgage at current interest rates (provided on the site).
5.
Prepare a
PowerPoint Presentation and address the following points:
a.
What are some
key things to know or think about before buying a home?
b.
What are the
differences in the price of similar homes in some major metropolitan suburbs in
the Northeast, Southwest, Midwest and
c.
Based on the Clartias codes what types of neighborhoods would be
favorable for the following groups of people:
i.
Young married
families
ii.
Older couples
iii.
Singles
professionals
iv.
Lower income
families
d.
How much did
the house cost that you could afford – what are your monthly payments?
e.
What were your
key factors in looking at a home?
f.
How much money
a year would you need to make to afford a $1,000,000 home at the current
interest rates
g.
How do interest
rates affect the monthly payments on a mortgage?