Given the scenario, your role and the information provided by the key players involved, it is time for you to make a decision. If you are finished reviewing this scenario, close this window and return to this week's You Decide item, in your course window, to complete the activity for this scenario. You can return and review this scenario again at any time.

Construct a table showing a comparison of data (including location, square footage, total price, price per square foot, and specifications), for both houses and then write a paper detailing the following:
1. What is the logic for choosing your two ZIP codes? Is the selection based upon work location, family location, good schools, and so on?
2. What is the logic behind choosing the size and specifications of each house?
3. Compare the total price of the two homes.
4. Compare the price per square foot for each house.
5. Compare the demographic data (referring to the location and ZIP code) of each house. Based upon these data, try to explain the similarities and differences in pricing for each home.
6. Select the home that you will purchase and explain the reasoning behind your selection. Assume that at least a 20% down payment is required. How much money would you need to have saved? After the down payment, what would be the purchase price of the home?
7. Assume the following:
€¢ Closing costs (including all potential loan origination, title, and closing fees) are $3,500.
€¢ You have been approved for a 30-year fixed-rate mortgage note at a rate of 5.0%. Calculate the monthly payment for this loan. (It is recommended that you show your calculation.)
8. Using your textbook readings this week as a resource, and based upon your monthly gross income and current additional debt payments, perform the calculations below (it is recommended that you show your calculations).

Transcribed Image Text:

House #1 House #2 Go to the following website: http://www.realtor.com/ (Links to an extemal site.)Links to an extemal site.. Enter a ZIP code. The goal now is to find a very similar house (age, lot size, square footage, number of rooms, and number of bathrooms). Chose Homes for Sale. Repeat Steps 1 through 12. Enter your price range (the minimum and maximum amount you want to spend). Enter the specifications (number of bedrooms and number of baths). In Step 2, pick another ZIP code 20+ miles away from the first ZIP code you picked for the first house. Hit Search. In Step 5, pick the same specification and choose a house that was built in the same year or so as the first house. Also, try your best to Find a home that you like or would consider. Go to the U.S. Census find a house that has the same lot size and website: http://www.census.gov (Links to an extemal site.)Links to an extemal site. square footage as the first house. Click on the American Fact finder tab on the left of the screen. 0. title, enter the ZIP code of the house you Under the Fact Access to Information found. 1. You will get lots of data on demographics like age, gender, family size, education, income, and crime rates. 2. Find out the price per square foot for the house you found.