Trish and Scott

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.

Non-traditional Purchase

Condo • Cherry Wood Gated Community

• 1120 Cayon Rd Apt 40 Ogden, UT

• $115,000• 5 Bedrooms, 2

Bathrooms• 1,878 sqft• Built in 1979

Good LocationFriendly CommunitySecurityLow maintenanceLarge spacious

rooms, pool, and sport areas.

Monthly maintenance fees

Less privacy Clustered togetherLimited parking RulesLong distance

Pros Cons

Apartment

3 bedrooms2 full baths1,195 Sq. Ft.Rent: $1,020.00 Application Fee:

$25.00 Security Deposit:

$150.004832 W Lacey Ln Riverton, UT 84096

$1,020/month

Needs vs Wants

ReliabilitySafetyPrivacy

Friendly neighborhood

Close proximity to schools

Similar sized home (3 bed, 2 bath, .5 acre lot)

Pros Cons

ProsSafe neighborhood

Good schools

Low maintenance repairs

ConsNot close to storesCan’t remodel to fit

their taste.Not too many

choices of apartments.

Dream House

Housing Options

1742 N. Earnshaw Ln.SLC, UT$199,999Monthly Payment:$1203.044 bed, 2.5 bath2067 sqftBuilt in 2000

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 Minimum2027 S. Douglas St.SLC, UT$165,400Monthly payment:$9852 beds, 1bath1003 sqftBuilt 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Cons• A bit out of date,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. BuyingAdvantages• More flexible-

renting• Less freedom and

privacy-renting

Disadvantages• Long term commitment-

buying• Hard to get out of-

buying• More liability-buying• Not enough space-

renting

Initial Cost of Buying a HomeDown Payment 24750Points 0Loan Origination Fee 1200Loan Application Fee 300Appraisal Fee 300Title Search Fee 200Title Insurance Fee 500Attorney’s Fee 400Recording Fee 20Credit Report 50Termite and Radon Inspection Fee 150Notary 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 15yrsPaid Interest

$390,415/ 48,196.29Income into Mortgage

$70,000

House Brought6675 S 3300 W. St, West Jordan, UT 84084$165,0005 bedrooms, 2 bathroomsBuilt 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.