HOME BUYING CASE

STUDY
BOB AND PINA-2
BY: PARKER JEWELL
THE CLIENTS

Bob Ing (31) and Pina Ing (28)

$40,000 in combined Assets
$47,800 in debt
Bob earns $42,000 a year
Pina was earning $27,000 a year but is now unemployed
Neither have life, disability, or a renters insurance policy
They carry 100/300/50 liability on their cars and have Health insurance
through Bobs employer
Credit score of 625
MONTHLY BUDGET

Category Budget
Gross Monthly Income $5,791 (when Pina is employed)
Taxes $300
Contributions $150
Food and Dining $400
Transportation (Car Payments) $400
Clothing $100
Entertainment $200
Medical $100
Insurance $100 Renters/ $250 Car
Insuance
Miscellaneous (Student Loans and Credit cards) $500
Leftover for mortgage and investing $3,291
 HOUSING
OPTION 1
1216 W Wasatch Ave Salt Lake City, UT 84104
Single Family Home For sale: $179,000
3 bedroom, 1 bath
1,775 Sqft
Pros: Close to work
Two car garage
Enough living space to start family
Cons: Qualify with a 20% down payment of 34,000 with 10,000 in
savings towards down payment they could save 24,000 in 10 years
taking $200.00 or more out of Pinas Income.
The overall crime rate in Greater Avenues is 42% higher than the
national average
Crime Rate: 4,074/100k
Monthly PITI: 1182.84 for 30 Year loan
HOUSING OPTION 2
2660 E 3300 S Salt Lake City, UT 84109
Condo For Sale: $170,000
2 bedroom, 2 bath
1,070 Sqft
Pros: Close to work
Easy Freeway access
Lower crime rate 3,200/100k
Long-term investment
Cons: Would have to save up for 10 years.
No parking garage
Monthly PITI: $859.61 for 30 year loan
HOUSING OPTION 3
3945 S 700 W Murray, UT 84123

Apartment For Rent: $1,180 per month

Pros: Swimming Pool
Close to Freeway

Gym included

Lower crime rate community 3,571/100k

Cons: $14,160 per year
1 year lease

Commute 20-30 Minutes to work

Best option: Family will live here for 12 Months, with possibility of refinancing until
they pay off debt and save up enough money for a for a down payment on a home.
WANTS

No more living paycheck to paycheck

Improve credit score
Education on spending
Figure out suitable financial plan
Live closer to work
Buy a new car in four years
Have a stable family in the next 10 years
NEEDS

Get out of negative net worth

Pay off all debt
Renters Insurance
Life Insurance
They will be looking for something that is on the lower end of payments
due to their debt accumulation
They will have to rent until they have $24,000 saved up and debt
payed off.