For your initial post this week, you will investigate the purchase of a home. You must show your work for the calculations (you may still use a calculator, just be sure to show the operations you performed). This will be performed in multiple steps:

### Step 1
Using Zillow.com or Redfin.com, find a house in the region of the country you plan to live in after graduation. It does not have to be for sale at the time of writing this—you can use the estimate of the home's price provided by the website. If you already own a home, find a home you'd be interested in moving to after graduation (even if you have no serious plans to move). Share the price of the home in your post for this step, and be sure to cite the link to the home at the bottom of your post in proper APA format.

### Step 2
Calculate how much a 20% down payment on the house would be. Be sure to clearly state what this amount would be, in dollars. Now, calculate the loan amount (that is, how much money you'll need to borrow) by taking the price of the house and subtracting your down payment from it. Be sure to clearly indicate what this loan amount will be.

### Step 3
Calculate your closing costs by estimating that closing costs will be 3% of the loan amount. Then, calculate your cash to close by adding the closing costs with the down payment amount from Step 2. This cash to close amount is how much money you'll already need to have in savings to facilitate the purchase.

### Step 4
Using a search engine, find the national average interest rate for a 30-year fixed mortgage and share it in your post, as a percent.

### Step 5
Then, use this [online calculator](https://www.calculator.net/mortgage-calculator.html). Calculate the monthly mortgage payment for buying this house. You will put in the loan amount you found in Step 2, the interest rate you just found in Step 4 (keep it as a percent), and will put in a 30-year loan term. Clearly state the mortgage payment amount in your post. *(Note: Keep in mind this mortgage payment is just what the lender receives from you each month for paying off the loan. You will also have property taxes and insurance, which we will not calculate here, and these coupled with your mortgage payment represent your true housing payment each month).*

### Step 6
One rule of thumb when buying a house is that you should spend no more than 28% of your household monthly income on your mortgage payment. Divide the mortgage payment you calculated in Step 5 by 0.28. This new value will be the minimum household income you'll want to have to be able to afford that mortgage payment according to this rule of thumb—be sure to share this value.

### Step 7
Share your personal thoughts concerning the affordability of the house you found. You may use the following questions to help:
- Do you expect to be making enough money at graduation (and after starting a new job, if applicable) to afford this house? If not, how many years of experience do you think you'll need to be making enough? Keep in mind you can bring into account other income streams from your household if they apply.
- Do you always need to make a 20% down payment? What are some of the advantages and disadvantages of home ownership?

**Responses:**
- **a)** Yes, I expect to be making enough money at graduation to afford this house. I have already secured a job with a high starting salary, and I have also factored in income from my partner.
- **b)** No, I don't expect to be making enough money at graduation to afford this house. I anticipate needing at least 5 years of experience in my field before I can comfortably afford this home.
- **c)** I believe that making a 20% down payment is a good financial decision, as it can help lower monthly mortgage payments and avoid private mortgage insurance. However, it may not always be feasible for everyone, and there are some mortgage programs that allow for lower down payments.
- **d)** Advantages of homeownership include building equity, stability, and the ability to personalize and make changes to the property. Disadvantages may include the responsibility of maintenance and repairs, as well as potential fluctuations in property value.