This section of this project will be to research and compare the cost of buying a home to renting, as you had previously done at the beginning of the project. You will need to download the Loans and Mortgages assignment and read through the assignment very carefully. There are some links below to help you find a home to purchase. There are several parts of the instructions that will tell you what to look for and what information to enter into the calculators in order to fill in the correct fields. Afterwards, you will take all of the information you find from this assignment and click on the Mortgage tab on the bottom of the screen on the Budget Spreadsheet you already worked on earlier. You will need to fill out a new spreadsheet based on the information you have acquired from this assignment such as property tax, water/garbage, electricity, etc. When you have entered in all of the information, you will need to do a comparison between renting and owning on the last page of the assignment.
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Online Mortgage Qualifier Tool
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Qualify for a MortgageOnce you have found a place to live you will need to see if you can afford this house. Use the online qualifier tool to the left to see if you would qualify for the mortgage. You will also need to use the property tax calculator tool below to determine if you can afford the home. The assignment sheet will explain how to fill everything out in the calculator and check if you qualify. If you don't qualify for the home you will need to choose a different home that you can afford with your salary.
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Calculating Property Taxes
When you own a home the community you in live in, city or rural, will charge you an annual tax for owning your property. This tax goes towards things like: police, firefighters, education, maintaining our roads, building infrastructures, etc. Use the link to the left to enter in the address of your potential home to find out the annual property tax. If you are from a different city, look up the estimated property tax using your local area. You will need to divide it by 12 months and enter it into the Mortgage Qualifier tool as well as record it in your budget spreadsheet afterwards.
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Online Mortgage Payment Calculator
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Calculate Your Mortgage Payments
Once you qualify for your home then you will need to use a different calculator to the left to figure out your mortgage payments and enter that into your budget spreadsheet. All of the information to enter into the Calculator Tool is in your Mortgage and Loans assignment sheet. Read through it carefully. Look at the screen shots below to help you complete the task properly.
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