Trish and Scott Trish and Scott are a

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

� 3 4832 W Lacey Ln Riverton, UT 84096 $1, 020/month Apartment bedrooms � 2 full baths � 1, 195 Sq. Ft. �Rent: $1, 020. 00 �Application Fee: $25. 00 �Security Deposit: $150. 00

Pros �Reliability �Safety �Privacy Cons �Friendly neighborhood �Close proximity to schools �Similar sized home (3 bed, 2 bath, . 5 acre lot) Needs vs Wants

Pros �Safe neighborhood �Good �Low schools maintenance repairs Cons �Not close to stores �Can’t remodel to fit their taste. �Not too many choices of apartments.

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, 1 bath 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cost • Lots of room • Off of a main road • In a convenient area, near lots of shops • Well maintained Cons • A bit out of date, remodeled in 2005 • Possible safety issues • Smaller than the old house • Farther away from parks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 24750 Points 0 Loan Origination Fee 1200 Loan Application Fee 300 Appraisal Fee 300 Title Search Fee 200 Title Insurance Fee 500 Attorney’s Fee 400 Recording Fee 20 Credit Report 50 Termite and Radon Inspection Fee 150 Notary Fee 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 15 yrs � Paid Interest $390, 415/ 48, 196. 29 � Income into Mortgage $70, 000

House Brought 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 to buy a home in a different location.