House buying 1

1. Log on (you obviously already did...)

2. Go to: http://www.freddiemac.com/pmms/pmms30.htm

3. Find the table marked “Monthly Average Commitment Rate And Points On 30-Year Fixed-Rate Mortgages Since 1971”.  This shows the average rate for 30 year fixed interest rate mortgages.

4. Record the rate for November 2013 here ________________

5. Now open http://www.trulia.com/home_prices/New_York/Buffalo-heat_map/

6. Click zip code at the top left of the map

7. Scroll below the map and find your zip code

8. Record the median sales price for a house in your zip code ____________________

9. Now go: http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx 

10. Where it says loan amount, enter the median sales price for your zip code.

11. Where it says loan term, enter 30 years (or 360 months, it’s the same thing)

12. Where it says interest rate per year, enter the 30 year fixed rate average from November 

13. Hit calculate

14. What are the monthly payments? _____________________

15. Click: Show/recalculate amortization table

16. What is the number at the bottom of the total interest column ___________________

17. Assume you have bad credit, which adds 2 percent to your interest rate.  Recalculate your mortgage

using the new interest rate and click show amortization table

18. What is the number at the bottom of the total interest column ___________________

19. Now assume you have excellent credit, subtract 2 percent from the 30 year fixed rate average you found in #4 above.

20. Recalculate your mortgage and click show amortization table.

21. What is the number at the bottom of total interest now? ______________________

22.  How much will having good credit save you? (Hint its #18 minus #21) _____________________