Home Buying Case Study By Anthony Salazar

Apartment 2 bedroom 1 bath $199 deposit 9-12 month lease option $ per month

PROS/CON PROS  Place to live  Nice area  Affordable CONS  Not owning  Neighbors live above, near and next door

Townhouse Sale price $101,000 (short sale) 20% down ($20,200) 30 year $ year $ year $ “You can save thousands over the course of loan by taking a 20 or 15 year loan” Total amount paid over 30 years $314, Total amount paid over 15 years $192,203.50

PROS/CONS PROS  Own  Short Sale  Nice area  Good schools  3 beds 2 baths CONS  Attached to neighbors

House Sale price $140,000 20% $28, year $1, year $1, year $1,335.31

PROS/CONS PROS  Own  New paint  RV parking  Good school  Basement CONS  Not so great area  Do your own repairs

Dream house Sale price $500,000 20% down $100, year $2, year $3, year $3,804.69

PROS/CONS PROS  Dream house  3 car garage  Finished basement  Basketball court  Great area CONS  House payment

 The Shimos should rent an apartment for a couple of years. While they are renting they should apply extra money towards their bills. After they pay off their bills, they should work towards saving for a down payment for a house. To me it doesn’t make sense to put money into a savings when they are paying a higher interest rate on their credit cards. Even though starting off they won’t have a savings they always can end up using a credit card if they need to. I think this will save them hundreds in interest. After renting, I would suggest The Shimos to look for a short sale house or a townhouse. The payments should work out for them.