Thursday, January 4, 2007

NOTES - Politics - Simday 6

Mortgaging A Home
Sabien Cunningham, Hood Council Leader and Spokes Sim

My wife and I just bought our a new home, and we're proud to be the first homeowners in SH.

Nick Michels, Bank Manager, calculates mortgage payments by using a Standard Loan Analysis sheet found in Microsoft Works. This spreadsheet calculates the number of payments automatically.

How To Finance a Mortgage in Simmington Hills:

(For example)

The house costs $30,926.

(10% is required to put down) - $3,092

Home Ownership Right (Willow County) - $10,000

Cost to Move In: $13,092

The mortgage is financed at : $27,834 (30,926 minus 3,092)

(Revised due to new Time Relevance system. Mortgage financing remains the same.  However, mortgages are longer spread out in simdays, they are paid with Income Tax Statements, every simyear. 1/2 of total Taxes collected is paid to The Administration, the other 1/2 is paid to the SimCity Mortgage Finance Company.)  See the Tax Accessor's REPORT for a current mortage payment breakdown.

On our loan analysis sheet, it spreads out to a 70-simday mortgage at $2,000/period, for 14 periods. (1 period = 5 simdays) 

If you're figuring this out without a loan analysis sheet...

Take the amount financed ($27,834 and subtract $2,000 from it, for as many times as it takes to pay it'll most likely see that on the last payment, an over payment has to be made.)

To explain the over payment made on the last payment: $2,000 x 14 = $28,000. $28,000 minus $27,834 = $166 overage

This overage will be counted as interest.

If you're really trying to pay that mortgage off, Sims can always pay more than the minimum $2,000 payment.

Note: A fuller explanation of Home Ownership, Buying/Selling a home is found under my Notes on Simday 5.

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