Here’s a Punaweb math problem for today.
You can currently buy a house in HPP for $600,000.
or
You can buy a ďouble duplex in HPP FOR $1,250,000.
1) calculate the down payment and monthly payments on $600,000.
2) calculate the down payment and mortgage on $1,250,000.
a) estimate what you would need to charge to legally rent out one unit.
b) develop a viable agricultural business plan for the remainder of the property that is not a house, catchment tank, or driveway so you can legally rent additional units as farm dwellings
Is the double duplex more affordable for either the owner or the renters?
Or is it more affordable to buy a single family house?
This is not a pick one question. Show your calculations.
Excellent questions HOTPE and an interesting math test! I hope I score big!
However, since I can only answer for numbers 1 and 2, let's just run the numbers as shown below. The rest of the questions can really only be determined on a case-by-case basis which would primarily be who can put up the cash required as shown below as well as have the credit qualifications in order to qualify for any such mortgage.
A $600,000 single family home: (Assumes a 7.25% 30-year mortgage)
@5% DOWN:
Monthly payment - Principal & Interest: $3,888.40
Total cash paid over 30 years: $1,429,825.73 (Includes down payment, principal & interest)
(NOTE: At 5% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $63,175.00 over the first 133 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@10% DOWN:
Monthly payment - Principal & Interest: $3,683.75
Total cash paid over 30 years: $1,386,150.69 (Includes down payment, principal & interest)
(NOTE: At 10% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $46,800.00 over the first 104 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@15% DOWN:
Monthly payment - Principal & Interest: $3,479.10
Total cash paid over 30 years: $1,342,475.65 (Includes down payment, principal & interest)
(NOTE: At 15% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $26,775.00 over the first 63 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@20% DOWN:
Monthly payment - Principal & Interest: $3,274.45
Total cash paid over 30 years: $1,298,800.61 (Includes down payment, principal & interest)
(NOTE: At 20% Down Payment, there is NO Private Mortgage Insurance required.
Plus, property taxes and insurance - whatever that may be on an individual basis.
A $1,250,000 double duplex home: (Assumes a 7.25% 30-year mortgage)
@5% DOWN:
Monthly payment - Principal & Interest: $8,100.84
Total cash paid over 30 years: $2,978,803.60 (Includes down payment, principal & interest)
(NOTE: At 5% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $131,614.58 over the first 133 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@10% DOWN:
Monthly payment - Principal & Interest: $7,674.48
Total cash paid over 30 years: $2,887,813.93 (Includes down payment, principal & interest)
(NOTE: At 10% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $97,500.00 over the first 104 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@15% DOWN:
Monthly payment - Principal & Interest: $7,248.12
Total cash paid over 30 years: $2,796,824.27 (Includes down payment, principal & interest)
(NOTE: At 15% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $55,781.25 over the first 63 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@20% DOWN:
Monthly payment - Principal & Interest: $6,821.76
Total cash paid over 30 years: $2,705,834.61 (Includes down payment, principal & interest)
(NOTE: At 20% Down Payment, there is NO Private Mortgage Insurance required.
Plus, property taxes and insurance - whatever that may be on an individual basis.
Interesting note: ANY 30-year fixed rate mortgage with an interest rate of 5.304% will yield the amount paid in interest over the 30 years to be the same as the original principal amount.
Maff is hard.
Yeah, bummer hey. Math, or as some say, maths, or as you say, maff, as well as reading comprehension skills must not spelled out for you on the Power Point Slide Deck of talking points either I guess.
You can currently buy a house in HPP for $600,000.
or
You can buy a ďouble duplex in HPP FOR $1,250,000.
1) calculate the down payment and monthly payments on $600,000.
2) calculate the down payment and mortgage on $1,250,000.
a) estimate what you would need to charge to legally rent out one unit.
b) develop a viable agricultural business plan for the remainder of the property that is not a house, catchment tank, or driveway so you can legally rent additional units as farm dwellings
Is the double duplex more affordable for either the owner or the renters?
Or is it more affordable to buy a single family house?
This is not a pick one question. Show your calculations.
Excellent questions HOTPE and an interesting math test! I hope I score big!
However, since I can only answer for numbers 1 and 2, let's just run the numbers as shown below. The rest of the questions can really only be determined on a case-by-case basis which would primarily be who can put up the cash required as shown below as well as have the credit qualifications in order to qualify for any such mortgage.
A $600,000 single family home: (Assumes a 7.25% 30-year mortgage)
@5% DOWN:
Monthly payment - Principal & Interest: $3,888.40
Total cash paid over 30 years: $1,429,825.73 (Includes down payment, principal & interest)
(NOTE: At 5% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $63,175.00 over the first 133 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@10% DOWN:
Monthly payment - Principal & Interest: $3,683.75
Total cash paid over 30 years: $1,386,150.69 (Includes down payment, principal & interest)
(NOTE: At 10% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $46,800.00 over the first 104 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@15% DOWN:
Monthly payment - Principal & Interest: $3,479.10
Total cash paid over 30 years: $1,342,475.65 (Includes down payment, principal & interest)
(NOTE: At 15% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $26,775.00 over the first 63 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@20% DOWN:
Monthly payment - Principal & Interest: $3,274.45
Total cash paid over 30 years: $1,298,800.61 (Includes down payment, principal & interest)
(NOTE: At 20% Down Payment, there is NO Private Mortgage Insurance required.
Plus, property taxes and insurance - whatever that may be on an individual basis.
A $1,250,000 double duplex home: (Assumes a 7.25% 30-year mortgage)
@5% DOWN:
Monthly payment - Principal & Interest: $8,100.84
Total cash paid over 30 years: $2,978,803.60 (Includes down payment, principal & interest)
(NOTE: At 5% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $131,614.58 over the first 133 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@10% DOWN:
Monthly payment - Principal & Interest: $7,674.48
Total cash paid over 30 years: $2,887,813.93 (Includes down payment, principal & interest)
(NOTE: At 10% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $97,500.00 over the first 104 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@15% DOWN:
Monthly payment - Principal & Interest: $7,248.12
Total cash paid over 30 years: $2,796,824.27 (Includes down payment, principal & interest)
(NOTE: At 15% Down Payment, there is Private Mortgage Insurance required. Assume 1% of loan amount until principal is paid down to 80% of total loan adds another $55,781.25 over the first 63 months.)
Plus, property taxes and insurance - whatever that may be on an individual basis.
@20% DOWN:
Monthly payment - Principal & Interest: $6,821.76
Total cash paid over 30 years: $2,705,834.61 (Includes down payment, principal & interest)
(NOTE: At 20% Down Payment, there is NO Private Mortgage Insurance required.
Plus, property taxes and insurance - whatever that may be on an individual basis.
Interesting note: ANY 30-year fixed rate mortgage with an interest rate of 5.304% will yield the amount paid in interest over the 30 years to be the same as the original principal amount.
Maff is hard.
Yeah, bummer hey. Math, or as some say, maths, or as you say, maff, as well as reading comprehension skills must not spelled out for you on the Power Point Slide Deck of talking points either I guess.
“I could say the stupidest things and you’d clap”
-DJT
-DJT