Introduction :

Purchasing a home is a big accomplishment and an expensive step in life. Deciding what home to buy is one of the biggest decisions one makes in life. There are many factors to consider when purchasing a home such as the monthly payments, the term of the loan, the amount of the down payment, the size of the house and the features of the home. Some of the features to consider are as follows:

  1. How many bedrooms do you want?
  2. What size of house (sq. feet)?
  3. What year is the house built?
  4. What type of landscaping or yard?
  5. Do you want a one or two story home?
  6. How many bathrooms?
  7. Do you want a fireplace?
  8. Do you want a garage? What size?(2 car etc.)
  9. What size lot do you want?

Task:

You will need to determine the following:

  1. The area to find your home.
  2. What features do you want in the home? (see above introduction for ideas)
  3. What are the monthly payments?
  4. Research and select 2 homes you would like to purchase. One of the homes should be a practical choice and the other can be a "reasonable dream" home.
  5. Find the current interest rate on home loans and determine the monthly cost for the homes you choose.
  6. Find the cost for mortgage insurance.
  7. Calculate the monthly payments including taxes, mortgage insurance, and interest.
  8. Determine the total cost of purchasing the home at the end of the mortgage term. (amount of interest)

Process:

You will determine the location, features, and price of the home and explain your choices.

You will then search for a house meeting the above criteria using the websites listed below. Be sure to note the website where you found your house in your presentations.

You will choose 2 homes from the houses obtained in your search that you would like to purchase. Use the Home Buying Record Sheet that is in the google docs template gallery. Go to Google Docs and save yourself a copy of this file..

You need to research mortgage options for home buying. You have two options, making a down payment of 20% or 5% payment. You are to find the interest rate associated with each down payment option and calculate the mortgage payments for each. You will need to consider 2 types of loans for each home. Record all your findings. For a 5% downpayment you will have to pay PMI insurance, until you have paid off 20% of your homes value. The cost per month is .78% of mortgage amount.

Based upon the monthly payment above (including taxes and insurance), You must determine if the the price would be reasonable for your anticipated future income.

You must determine total cost of purchasing the home chosen (Determine the interest paid during the loan).

You are to compile the closing costs for your home purchases. Use the Closing Cost Record Sheet that is in the google docs template gallery. Go to Google Docs and save yourself a copy of this file..

You will do a PowerPoint presentation based upon their results, including why you chose the houses that you did. Be sure to give a complete description of the costs involved with each home purchase. Include a list of websites used for the presentation.

Resources:

  1. RE-MAX is a good place to find your homes. They also have some other support services for home buyers.
  2. Bankrate Mortgage Calculator has a calculator for monthly payments of mortgages. You will have to find the rates needed for the loans first.
  3. Money is a good place to get a rate comparison for area banks. The rates are needed for the calculation of the monthly payment.
  4. Homeowners Insurance Quotes Insurance.com


Evaluation:

Your project will be grades as follows:

Beginning
1 / Developing
2 / Accomplished
3 / Exemplary
4 / Score
The student
will
Research
The cost of
2 Homes calculate
The mortgage based
On 2 borrowing options. / Student did
not
research the
price of
homes nor did
calculate the
mortgage / Student
researched
the price of
homes but did
not calculate the
mortgages. / Student researched
the price of
homes and
calculated the
mortgage of
one of the
options
correctly / Student researched the
price of homes and calculated
both mortgage
options
correctly
The student
will have a complete report on the results of their research / Student did
not complete
complete research / The student
did research but did not give a complete report. / The student did solid research and gave a mostly complete report. / The student did solid research and had a complete written report.
Student will
Do a Powerpoint
Presentation / Student did not present / Student did not articulate information
Clearly / Student articulated information but not good timing / Student articulated information very well.

Conclusion:

During the Buying a Home web quest you were using critical thinking skills such as: analysis, comparison, and evaluation. This involved research and the use of problem solving skills. Upon the completion of this web quest you should have a much clearer understanding of what is necessary in order to purchase a home and understand the costs involved and should have sharpened your critical thinking, research, and problem solving skills.