Anne Sorey

Professor Goehle

Math 101

March 26, 2017

Buying a House

For this project I chose to buy a house in Charlotte, North Carolina, where the median

sales price is 180,000 dollars. I found a home close to that amount, with the price being 179,000.

Its a beautiful home with 3 beds and 3 baths, a total of 1,987 square feet in uptown Charlotte. I

chose U.S. Bank to help me with my mortgage, and they have options such as fixed-rate

mortgages, adjustable-rate mortgages, and more. The down payment for the home would be

$35,800 (20%). I ended up using the 30 year and 15 year fixed rate mortgages, and the 10 year

adjustable rate mortgage. If we chose the 30-Year Fixed Mortgage, the rate would be 4.375%

and the estimated monthly payment would turn out to be $714.57. I got this answer by using the

Amortization Payment Formula. P=143,200 and compounding periods per year m=12. We

would end up paying 293,045.20 dollars for the house. For the fifteen year plan, the rate would

be 3.750% and monthly we would pay 1041.06. So P=143,200 and the compounding periods per

year m=12. This time, it would only be 180 months. In total, we would pay 223,190.80 dollars.

For the Adjustable-rate mortgages for 10 years, the rate would be 3.875% and the estimated

monthly payment would be $673.04. However, the price can go up or down monthly, and can be

unpredictable as to what youre going to pay because you have the risk. of rate fluctuation.

Using the calculated monthly payments and down payment amount, the final cost ended up being

116,564.80.
 I would end up choosing the fifteen year plan of a fixed-rate mortgage. Even though I

would have to pay more every month, the final price is cheaper and I can get my payment out of

the way quicker.

Zillow, Inc. "Charlotte NC Home Prices & Home Values." Zillow. N.p., n.d. Web. 26
Mar. 2017.

"Personal Banking, Loans & Wealth Management - U.S. Bank." U.S. Bank Online
Banking - Personal Banking | Loans and Credit | Investing and Wealth. N.p., n.d.
Web. 26 Mar. 2017.