-Online Activities-

My Dream House

We will now take a trip into the future. Your hard work at school has paid off. You have just graduated from college and landed the perfect job. Your employer has given you a position that pays $50,000 a year, but you will be required to move to Houston, Texas. You will now be using an online real estate service in Houston to shop for a house and determine the monthly payment. Happy house hunting!
The Houston Real Estate Web has many Houston area houses listed for sale. Visit this site and find the house of your dreams. Please print this page and then answer the questions about your house.
1. In one paragraph describe the house you have chosen. Be sure to tell why this is your dream home.
2. What is the selling price of this house?
3. What is the area of the house in square feet?
Congratulations! You have selected a beautiful house, but now you must pay for it! You will be using a Mortgage Calculator to help determine the monthly payment.
Enter the term (number of years to pay), the interest rate, and the mortgage amount (price of house) in the calculator and find the monthly payment. Please answer these questions.
4. What is the monthly payment if you use a term of 30 years and an interest rate of 8 percent?
5. How many monthly payments would you have to make in 30 years?
6. What is the total cost of your home if you finance it (pay for it) over 30 years at 8 percent?
7. That figure might have shocked you! Lets see if we can save some money. What would be the monthly payment if you could find the financing for 7 percent?
8. How much less is each monthly payment at 7 percent than at 8 percent?
9. What is the total cost of the house at 7 percent for 30 years? (360 X the monthly payment)
10. How much have you saved by financing at 7 percent rather than 8 percent?
11. Lets save some more money. Many people finance their home for a shorter term than 30 years. Use the calculator to find the monthly payment for 15 years at 7 percent.
12. How many monthly payments will you make in 15 years?
13. What is the total cost of the house at 7 percent for 15 years?
14. What is the "lesson to be learned" when you compare your answer to question 13 with your answer to question 9?
15. What is the "lesson to be learned" when you compare your answer from question 9 to your answer to question 6?

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