Hello I'm a student in college and one of my classes requires me to pretend "buy" a house. I'm not going to actually buy a house its just a project to see what kind of house I will be able to buy in 5 years with a salary of $28917 a year. I will receive a 2% raise each year to cover inflation. I have to take a loan out to buy the house. I need to find interest rates and duration of the loan. I also need to find out about loan origination fees, discount charges, closing costs, and requirements for down payments. I need an estimate of what the monthly taxes and insurance will be.

Any help will be appreciated.

Call a mortgage broker with your project and they can give a sample Good Faith.

Buying a house in five years you can run projected numbers but they will not be accurate.

You can't predict with 100% accuracy what kind of loans,interest rates,points,fees,closing costs there will be in five years.

The lending environment will be totally different. Inflation is fixing to kick in big. If in five years you are looking at making only 28,917 a year gross that will be about at the poverty level.

I would look for a different profession if that's all it pays or spend a few more years getting a masters or doctorate.If you graph it out over time with the higher degree you will advance to much higher positions and make much more money over your career.

That's a mighty gung-ho response Super. She didn't say it had to be 100% accurate or that $29k is her future salary. It's for a school project, and I would venture to guess the $29k is either an arbitrary number, or that the number was selected purposefully to illustrate your point that "If in five years you are looking at making only 28,917 a year gross that will be about at the poverty level."

In terms of your project, Jennifer, I would recommend speaking with a local real estate agent, as they will be better poised to answer these questions for you, since many of the figures you are looking for will be dependent on your location.

Imagine if this student conducted the project back in 2005. For 29k you should be able to buy a 500k home AND cash out 100k for your new 5 series. Thanks in part to our new no doc. loans escrow should close in three days...

That sounds like a great project. They need to start teaching things like that in high school and get rid of all that extremely complex math that 99% of the students will never use.