The document summarizes the key aspects of purchasing a home, including searching for a property, the buying process, price, ability to make payments, and ensuring you like the home. It then details the author's choice to purchase a 2-bed, 2-bath condo in Charlotte, NC for $250,000 with a $42,000 down payment and monthly payments of $1,691 over 25 years, totaling $280,084 in interest. The author calculates they can afford the payments, putting the down payment towards the purchase.

1. Purchasing a Home Neema Y. Smith

12. and I chose…

13. The Home 4620 Piedmont Row Drive #706D, Charlotte - South, NC 28210 Property Type: CONDO/TH List Price: $250,000

15. Monthly Cost = $1,691 Interest Rate = 7% Down Payment = $42,000 25 yrs. Loan Term $50 Est. Home Insurance $258 Est. Property Taxes $1,330 Principal & Interest

16. $246,504.47 $1,439.85 $327.10 $1,766.95 11 $246,175.47 $1,437.94 $329.01 $1,766.95 12 $246,831.57 $1,441.75 $325.20 $1,766.95 10 $247,156.77 $1,443.63 $323.31 $1,766.95 9 $247,480.08 $1,445.51 $321.44 $1,766.95 8 $247,801.52 $1,447.37 $319.57 $1,766.95 7 $248,121.10 $1,449.23 $317.72 $1,766.95 6 $248,438.82 $1,451.07 $315.88 $1,766.95 5 $248,754.70 $1452.90 $314.05 $1,766.95 4 $249,068.74 $1,454.72 $312.23 $1,766.95 3 $249,380.97 $1,456.53 $310.41 $1,766.95 2 $249,691.39 $1,458.33 $308.61 $1,766.95 1 Balance Interest Principal Amount Payment

19. ○ Ability to make payments? Salary = $75,000/year ○ After taxes = $69,525 ○ Income/mo. = $5,793.75 I will be paying back $280,084.40 in interest over the loan term.

20. ○ Ability to make payments? DEBT / INCOME - Debt/Income is the ratio of how much I have to pay and how much I am bringing in.

23. - I decide to use the money for a down payment. The more I pay at the get-go, the less time it will take for me to finish paying off the condo.

24. The amortization calendar I previously showed demonstrated the first 12 months of payment. After 25 years the total loan, including interest, will be paid off.