Home Buying Case Study

By Anthony Salazar

Apartment

2 bedroom 1 bath$199 deposit9-12 month lease option$735.00 per month

PROS/CON

PROS Place to live

Nice area

Affordable

CONS Not owning

Neighbors live above, near and next door

Townhouse

Sale price $101,000 (short sale)20% down ($20,200)30 year $872.50 20 year $965.5715 year $1067.80

“You can save thousands over the course of loan by taking a 20 or 15 year loan”

Total amount paid over 30 years $314,099.82Total amount paid over 15 years $192,203.50

PROS/CONS

PROS Own

Short Sale

Nice area

Good schools

3 beds 2 baths

CONS Attached to neighbors

House

Sale price $140,00020% $28,00030 year $1,064.6020 year $1,193.6415 year $1,335.31

PROS/CONS

PROS Own

New paint

RV parking

Good school

Basement

CONS Not so great area

Do your own repairs

Dream house

Sale price $500,00020% down $100,00030 year $2,837.8720 year $3,298.7115 year $3,804.69

PROS/CONS

PROS Dream house

3 car garage

Finished basement

Basketball court

Great area

CONS House payment

The Shimos should rent an apartment for a couple of years. While they are renting they should apply extra money towards their bills. After they pay off their bills, they should work towards saving for a down payment for a house. To me it doesn’t make sense to put money into a savings when they are paying a higher interest rate on their credit cards. Even though starting off they won’t have a savings they always can end up using a credit card if they need to. I think this will save them hundreds in interest. After renting, I would suggest The Shimos to look for a short sale house or a townhouse. The payments should work out for them.