Scribd
Upload
21 views

Nama: Rafli Baihaqi NPM: 1706024564 Jurusan: Teknik Kimia Case Study Is Owning A Home A Net Gain or Net Loss Over Time?

Rafli Baihaqi analyzed whether owning a home is a net gain or loss over time. He considered two plans: Plan A was a 30-year fixed mortgage, and Plan B was a 15-year fixed mortgage. For Plan B, the total future worth was $246,010. Plan B resulted in a higher net worth over time compared to Plan A, so owning a home with the 15-year mortgage under Plan B would be a net gain.

Uploaded by

Rafli Baihaqi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
21 views

Nama: Rafli Baihaqi NPM: 1706024564 Jurusan: Teknik Kimia Case Study Is Owning A Home A Net Gain or Net Loss Over Time?

Rafli Baihaqi analyzed whether owning a home is a net gain or loss over time. He considered two plans: Plan A was a 30-year fixed mortgage, and Plan B was a 15-year fixed mortgage. For Plan B, the total future worth was $246,010. Plan B resulted in a higher net worth over time compared to Plan A, so owning a home with the 15-year mortgage under Plan B would be a net gain.

Uploaded by

Rafli Baihaqi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Nama: Rafli Baihaqi

NPM: 1706024564
Jurusan: Teknik Kimia

CASE STUDY

IS OWNING A HOME A NET GAIN OR NET LOSS OVER TIME?

1. Plan B: 15-year fixed rate of 5.0% per year interest; 10% down payment.

Amount of money required for closing costs:


Down payment (10% of $330,000) $33,000
Up-front fees (origination fee, attorney’s fee
Survey filling fee, etc.) $3000
---------------------------------------------------------------------- +
Total $36000

The amount of loan is $297,000, and equivalent monthly principal and interest(P&I) is determined
at 5%/12 = 0.4167& per month for 15(12) = 180 months.

A = 297,000(A/P,0.4167%,180) = 297,000(0.00791) @ $2350

Add the T&I of $500 for a total monthly payment of


PaymentA = $2850 per month

The future worth of plan B is the sum of three future worth components: remainder of the $40,000
available for the closing costs (F1B); left-over money from that available for monthly payments
(F2B); and increase in the house value when it is sold after 10 years (F3B). These are calculated
here.
F1B = (40,000-36,000)(F/P,0.5%,120) = $7278

No money is available each month to invest after the mortgage payment of $2850. Therfore,
F2B = 2850 – 2850 = $0

Net money from the sale in 10 years (F3B) is the difference in net selling price ($363,000) and
remaining balance on the loan.
Loan balance = 297,000(F/P,0.4167%,120)-2350(F/A,0.4167%,120)
= 297,000(1.6471) – 2350(155.2856)
= $124,268
F3B = 363,000 – 124,268 = $238,732
Total future worth of plan B is:

FB = F1B + F2B + F3B = 7278 + 0 + 238,732 = $246,010

2. A: 30-year, fixed rate plus investments, FA = 111,246


F3A berubah jadi 231,000 – 243,386 = $-12,386
Total future worth of plan A is:
FA = F1A + F2A + F3A = 7278 + 116,354 -12,386 = $111,246

B: 15-year, fixed rate plus investments, FB = 114,010


F3B berubah menjadi: 231,000 – 124,286 = $106,714
Total future worth of plan B is:
FB = F1B + F2B + F3B = 7278 + 0 + 106,714 = $113,992

Dari hasil perhitungan dan analisis yang saya lakukan, lebih baik untuk memilih Plan B.

You might also like