GOOD MORNING Please have House Project Handout and

GOOD MORNING! Please have House Project Handout and Power. Point open

ANNOUNCEMENT S 4 th Quarter – 4 Projects (2 weeks each) Project 2 due Friday 4/16 Project Handouts will be uploaded on Student. VUE Microsoft Teams Website: chollacruzmathfinance. weebly. com

Tutoring will be available for 1 st Semester Make Ups or to improve test scores from 3 rd Quarter (zoom login is the same as always): ØMonday 2: 15 – 3: 00 ØTuesday 10: 25 – 11: 10 ØWednesday 12: 29 – 1: 50 ØThursday 2: 15 – 3: 00 ØFriday 10: 25 – 11: 10 OFFICE HOURS

OBJECTIVES: I will be able to… üresearch what is needed to buy a house and calculate the costs

HOUSE PROJECT Due date: Friday, April 16 (before midnight) Power. Point o Each slide should contain pictures and information. Keep text short and to the point. o Follow instructions on handout (Microsoft Teams, Student. VUE, website: chollacruzmathfinance. weebly. com) Submission: o Once finished, upload Power. Point to Microsoft Teams o Late submissions will NOT be accepted

HOUSE PROJECT Due date: Friday, April 16 (before midnight) Part 1: Research Go on to zillow. com and find a house that fits your needs. Make a Power. Point that includes the following: overview (price, bedrooms, bathrooms, square footage, and address) description (paragraph describing the house) pictures facts and features nearby schools

HOUSE PROJECT Due date: Friday, April 16 (before midnight) Part 2: Monthly Cost Your Power. Point must also include the following calculations: Calculate down payment (assuming you can put down 3. 5%). Use your calculator to determine the monthly payment (after the down payment has been made) for a 30 -year fixed rate mortgage at 4. 108%. Determine the money (per month) that will go towards paying for the house (principal) and how much money will go to the bank (interest) for the first 6 months. Calculate how much interest is paid on the loan. Calculate the total cost of the house. Determine your annual and monthly property tax bill if property taxes are 1. 04%. Determine your annual and monthly homeowner’s insurance bill. Determine what your annual and monthly income must be to afford this house.

EXAMPLE 1 Suppose your house costs $280, 900, calculate the down payment, assuming you can put down 3. 5%. Convert % into decimal (move decimal 2 places to the left) Multiply it by the cost of the house 0. 035 x 280900 = 9831. 5 The down payment would be $9, 831. 50.

EXAMPLE 2 Use the TVM Solver to determine the monthly payment (after the down payment has been made) for a 30 -year fixed rate mortgage at 4. 108%. N = number of payments (12 x years) I% = fixed rate mortgage (leave as %) PV = amount of loan (house – down payment) PMT = monthly payment (? ) FV = 0 P/Y = 12 C/Y = 12 N = 12 x 30 = 360 I% = 4. 108 PV = 280900 – 9831. 50 = 271068. 50 PMT = ? FV = 0 P/Y = 12 C/Y = 12 The monthly payment would be $1311. 06.

EXAMPL E 3: 1 st Beginning Balance = PV (from 2 nd bullet) 2 nd-6 th Beginning Balance = previous Ending Balance Monthly Payment = PMT (answer from 2 nd bullet) Towards Interest = Beginning Balance x 0. 04108 ÷ 12 Towards Principal = Monthly Payment – Towards Interest Ending Balance = Beginning Balance – Towards Principal Determine the money (per month) that will go towards paying for the house (principal) and how much money will go to the bank (interest) for the first 6 months. Payment Number Beginning Balance Monthly Payment Towards Interest Towards Principal Ending Balance 1 271068. 50 1311. 06 927. 96 383. 10 270, 685. 4 2 270, 685. 40 1311. 06 926. 65 384. 41 270, 300. 99 3 270, 300. 99 1311. 06 925. 33 385. 73 269, 915. 26 4 269, 915. 26 1311. 06 924. 01 387. 05 269, 528. 21 1311. 06 922. 68 388. 38 269, 139. 83 6 269, 139. 83 1311. 06 921. 36 389. 70 268, 750. 13

EXAMPLE 4 Calculate how much interest is paid on the loan. N x PMT – PV N = 360 PMT = 1311. 06 PV = 271068. 50 360 x 1311. 06 – 271068. 50 = 200913. 1 The interest would be $200, 913. 10.

EXAMPLE 5 Calculate the total cost of the house. Cost of house + Interest Cost of House = 280900 Interest = 200913. 10 280900 + 200913. 10 = 481813. 1 The total cost of the house would be $481, 813. 10.

EXAMPLE 6 Determine your annual and monthly property tax bill if property taxes are 1. 04%. Convert % into decimal (move decimal 2 places to the left) Multiply it by the market value of the house 1. 04% = 0. 0104 Market Value: 280900 Annual Property Tax Bill: 0. 0104 x 280900 = 2921. 36 Monthly Property Tax Bill: 2921. 36 / 12 = 243. 45 My annual property taxes would come out to be $2, 921. 36, which would make my monthly property tax bill about $243. 45.

EXAMPLE 7 Determine your annual and monthly homeowner’s insurance bill. Found on zillow. com by clicking on the following tabs: ØMonthly Cost ØHome Insurance 98/month 1180/year My annual homeowner’s insurance would come out to be $1, 180, which would make my monthly homeowner’s insurance bill $98.

EXAMPLE 8 Determine what your monthly and annual income must be to afford this house. It is recommended that your rent should be under 28% of your income. Monthly Payment: 1311. 06 Recommended Budget: 28% = 0. 28 Monthly Income: 1311. 06 / 0. 28 = 4682. 357 Annual Income: 4682. 36 x 12 = 56188. 32 My monthly income should be about $4, 682. 36 in order to afford this house, making my annual income $56, 188. 32.

SENIOR ANNOUNCEMENTS Senior meeting TODAY at 12: 30 PM. Zoom ID 86818299285 https: //tusd 1. zoom. us/j/8 6818299285