Finance assignment
For this assignment, perform the following:
1. Pick an area where you may want to live. It should be a city and state in the United States, but if it is a big city you might want to narrow it down by neighborhood. For example, if you pick St. Louis, you could narrow it down by focusing on the Central West End. Use this location, and this location only, for easy comparison. in here use Charleston IL
2. Based on your results from the home affordability exercise, what is the upper limit of your home purchasing budget? (you might have a budget of $50,000...but you should see what that can, or cannot buy you!). What is your maximum monthly payment and your maximum purchase price?
3. Go shopping! Find three properties (could be a single-family home, condo, townhome, etc.) that you like that are all within your budget, in your selected geographic location. Attach a couple pictures of each of the three properties. Compare and contrast their features, and choose the one you like best, based on the features of the home.
Then after selecting the home for you, respond to the following considerations:
4. When you write a contract to buy this house, what things would you put in the contract and why? (at a minimum, you are required to discuss inspections, contingencies, and closing costs)
5. Based on the purchase price of the home, which loan options best suit this purchase and why? How does the down payment amount influence the type of loan you might qualify for and any PMI you might have to pay?
6. Will you be paying PMI, and if not, why? If so, how much will you expect to pay, monthly or up-front, and for how long?
7. Why is replacement cost so important for a homeowner's insurance policy? What kind of liability limits would you choose, and why? What perils might not be covered under your standard replacement cost policies? Where can you go to get these additional policies?
8. What would you estimate for closing costs, property tax (check county property tax records and/or the listing), and insurance (provide at least one homeowners insurance quote from an online source).
9. Given your findings, and the financial position you are in based off of Week 5's exercise, would you be happy buying a house within this budget range? Why or why not?
10. Given your findings, would you proceed with this purchase, or would you wait? Why or why not?
11. If you chose to wait, for any reason, what might be the benefit of delaying homeownership for a while? In what situations would you want to continue to rent, for example?
Attachment:- Week_5.rar