Trish and Scott

Trish and Scott are a young couple with two children. Their combined income is $75,000 per year, both have stable careers. Trish and Scott have agreed that a friendly neighborhood, good schooling, and house with four bedrooms are important. They currently have $30,000 for a down payment with the previous mortgage paid off.

Trish and Scott

Condo

Cherry Wood Gated Community 1120 Cayon Rd Apt 40 Ogden, UT $115,000 5 Bedrooms, 2 Bathrooms 1,878 sqft Built in 1979

Non-traditional Purchase

Pros Good Location Friendly Community Security Low maintenance Large spacious rooms, pool, and sport areas.

Cons Monthly maintenance fees Less privacy Clustered together Limited parking Rules Long distance



4832 W Lacey Ln Riverton, UT 84096 $1,020/month

3 bedrooms 2 full baths 1,195 Sq. Ft. Rent: $1,020.00 Application Fee: $25.00 Security Deposit: $150.00

Apartment

Pros

Cons

Reliability Safety Privacy

Friendly neighborhood Close proximity to schools Similar sized home (3 bed, 2 bath, .5 acre lot)

Needs vs Wants

Pros Safe neighborhood

Good schools

Cons Not close to stores Cant remodel to fit their taste. Not too many choices of apartments.

Low maintenance repairs

Dream House
1742 N. Earnshaw Ln. SLC, UT $199,999 Monthly Payment:$1203.04 4 bed, 2.5 bath 2067 sqft Built in 2000 Housing Options

Pros Fits it their needs Affordable Near parks, food and shopping, and a hospital Near a highway

Cons Near busy streets Small Older, may be renovation costs Not as neighbor friendly

Bare Minimum
2027 S. Douglas St. SLC, UT $165,400 Monthly payment:$985 2 beds, 1bath 1003 sqft Built 1936

Pros Culvasac, close to neighbors Newer, no renovation cost Lots of room Off of a main road In a convenient area, near lots of shops Well maintained

Cons A bit out of date, remodeled in 2005 Possible safety issues Smaller than the old house Farther away from parks

Renting Vs. Buying

Advantages More flexible-renting Less freedom and privacy-renting Disadvantages Long term commitment-buying Hard to get out ofbuying More liability-buying Not enough spacerenting

Initial Cost of Buying a Home Down Payment Points Loan Origination Fee Loan Application Fee Appraisal Fee Title Search Fee Title Insurance Fee Attorneys Fee Recording Fee Credit Report Termite and Radon Inspection Fee Notary Fee 24750 0 1200 300 300 200 500 400 20 50 150 50

Total Initial Cost: 27,920

How much do you need for a 15% down payment?

They need $30,000, which they currently have left over after paying off their mortgage

The maximum mortgage they are likely to qualify for is $480,000 They should get a 15 year fixed mortgage

How long will it take to pay the home off?

Monthly Payments $1,184.42 Years Paid 15yrs Paid Interest $390,415/ 48,196.29 Income into Mortgage $70,000

House Bought

6675 S 3300 W. St, West Jordan, UT 84084 $165,000 5 bedrooms, 2 bathrooms Built in 1917

Pros and Cons

Trish and Scott are likely to stay at this house until their kids graduate from high school.
Later on, they can look into buying a home in a different location.