trish and scott
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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Cons• A bit out of date,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.