Renting vs.

Owning
Project
Name:

Jacqueline Poleni

Renting vs. Owning Project: College Campus

College Living Part 1: Location
College:

Michigan State University

Location: Lansing, MI
Housing Location: On Campus
Housing Type:
double
# of Bedrooms:

Shared Bedroom
# of Roommates: 1
Bath Attached:
No
(Community/Shared)
Living Space:
Yes
Washer/Dryer:
No
Fireplace:
No
Parking:
Yes
Size: Parking Space
Other:
Parking Cost: $
290 per semester
Meal Plan Included:
Yes
Meal Plan Cost:
$
$2,931

IMAGE OF ROOM

Included:$150 Spartan cash, 4 guest

meal passes, one combo x-change per
day
Gym:
Yes
Internet:
Yes
Cable:
Yes
Computer Lab:
Yes
Additional Amenities:
group study
rooms, elevators
Reasons you chose this College
Housing: It is the most reasonable cost
with everything that I will need

College Housing Part 2: The Payment

What Would Your Housing Payments Be Per Month? $ 9,524
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: 23650
Manila St, Clinton
Township MI, 48035
School District:

Lanse Cruese

# of Bedrooms:

Style: 1 bed
# of Baths: 1
Heated by: Gas
Square Footage: 700 sq ft
Washer/Dryer:
No
Fireplace:
No
Parking:
Yes
Size: Parking Space
Parking Cost: $
25 per month
Included Utilities:
Which:

No

Additional Amenities:
Reasons you chose this Apartment:
Close to my job
Apartment Part 2: The Payment
What Would Your Rent Payments Be?
$
550

Renters Insurance:
Total Monthly Rent Payment:

$21.00
$
571

Renting vs. Owning Project: Buying a House

House Part 1: Finding the House
Income level you have been given:
$ 70,000

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:

$ 150,000

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: $ 124,900
Properties of the house you have chosen: Fill in the information below
Address:
22709 Raymond Crt, St.
Clair Shores MI, 48082
School District:

Lake Shore

# of Bedrooms:

Style:
Ranch
#of Baths: 1
Type of siding:
vinyl
Type of roof: shingled
Heated by: Gas
Square footage: 936
Lot size:
Garage:
If Yes, Size:
Year built:
Fireplace:
Basement:

.5 acres
Yes
1 Car
1955
No
Yes

List some of the reasons you chose this house:

school Has a nice lawn

It is close to my job and my

House Part 2: The Payment

What Would Your Mortgage Payments Be? Sell price (124,900) divided by number
of months
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:
divided by number of months
Market Value:
118,655
Interest (1st Yr):
Monthly
Payment
s
4.0%
4.5%
5.0%
5.5%

124,900

Mortgage Amount:
Principle (1st Yr): 5,784

4,752
15 years

20 years

25 years

30 years

50 years

877.68
907.70
938.32
969.51

719.03
750.67
783.07
816.21

626.30
659.52
693.65
728.65

566.48
601.21
636.97
673.71

205.67
206.66
207.65
208.64

Monthly Payments with a 15% down payment:

(106,165) divided by number of months
Market Value:
106,165
Interest (1st Yr):

sell price minus 5% (118,665)

124,900

sell price minus 15%

Mortgage Amount:
Principle (1st Yr): 5,172

4,248

Monthly
Payment
s
4.0%

15 years

20 years

25 years

30 years

50 years

785.29

643.24

560.38

506.85

184.02

4.5%

812.16

671.65

590.10

537.92

184.9
4

5.0%
5.5%

839.55
867.46

700.64
730.30

620.63
651.95

569.92
602.79

185.78
186. 67

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:
18,735
Length of Mortgage:

15
15

Monthly Payment: Principle:

Interest:

%: Total Down Payment Amount:

Years
$513.58
$
353.88

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

2,360.62

Abstract of Title

$120.00

$120.00

Attorney Fee

$250.00

$250.00

Documentation
Stamp
Processing Fee

.3% of Mortgage

354.093

1.10% of Mortgage

1,298.34
3,845

Total Closing Costs

20% of total amount

of house

House Part 4: Real Estate Taxes

Combined Millage of county, municipal and school:
Assessed Value of Home:
$
Yearly Real Estate Tax:

$
44.96
124,900
$
5,591

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: $ 3,184.95
Now, compare your calculation at: http://www.zillow.com/mortgage-calculator/
Zillow Homeowners Insurance Estimate: $ 800