Group 2 ProjectPart 3

By: Ashlie Lawson, Christina Yim, Sean

Sibbett, Christopher Lincecum, and Jake Pitkin.

30 Year vs. 15 YearHow much home can we afford?

30 Year Interest Rates

Ashlie 3.364%

Christina 3.625%

Christopher 3.4%

Jake 3.5%

Laura 3.389% Sean 3.667%$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Cost

15 Year Interest Rates

Ashlie 2.704% Christina 2.873%

Christopher 3.4%

Jake2.75%

Laura 2.628% Sean 2.95%$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Cost

Chart of Monthly Payments @ 30 Year at the beginning

To Plan Your Own Amortization Schedule Click Here

Chart of Monthly Payments @ 30 Year at the end

Chart of Monthly Payments @ 15 Year at the beginning of the loan

Chart of Monthly Payments @ 15 Year at the end of the loan

Insights: When deciding between renting, a 15

year loan and a 30 year loan, there is a lot to consider.

We put together a few different scenarios and the actions that should accompany them.

Scenario #1: Mary just got her BS in the field she

wants to go into. Mary isn’t looking to start a family and has no kids. Because of this her plans are still loose on if she wants to stay in the state she grew up in while pursing her new career.

It would be best for Mary to just rent for now incase she decided to relocate for her career.

Scenario #2: Teddy just finished his degree and got a

position at a local hospital. His wife is about to have her 2nd kid and their 1 bedroom apartment won’t do the trick anymore.

It would be in Teddy’s best interest to do a 30 year loan. He is most likely not going to be moving for some time and will need all the extra money he can get for the new baby. Therefore, a lower mortgage payment is in his favor.

Conclusions: 15 year loan - is the best option because you

save a lot of money on interest, and you build equity faster, but only if you can afford it.

30 year loan - interest rates are higher but is more affordable and also a safer bet.• You can always choose to make additional payments toward your principal

• This allows you to have the home you want with reasonable payments especially if you plan on staying put that long.

Contributors…

Ashlie Lawson – Data, Scenarios Christina Yim – Data, Conclusions Sean Sibbett – Data, Charts for 15

year & 30 year pmts Christopher Lincecum - Data Jake Pitkin – Data, Scenarios, Insights. Laura Smith – Data, 15 & 30 year

Interest Graphs, P1,P2