WHITBY FREE PRESS, WEDNESDAY, APRIL 30, 19 80, PAGE 21 DOLLAR SunitE Caleculate the cost before buying By Murray Rumack, CA If you are thinking about buying a bouse, be realîstic and calculate what you can afford to pay before you start Iooking. Your affordability hinges on vour net income and the down payment because the amnount you put down affects your biggest month- Iv cost, -- mortgage pay- ments. Ideally, you should put down at least 25 per cent of the total price of the bouse.1 To calculate what you can afford to carry in monthly expenses, take vour total after-tax income and subtract the amount Dollar Sense offers generai financial advice by mem- bers of The Institute of Chartered Accountants of Ontario. vou need for necessities -- food, clothing, medical expenses and transportat- ion as well as some cushion for other expenses such as vacations and entertain- 'ment. The amount left is what you can afford to put into your home. Once you know what you have to send each month, break it down into: mort- -gage interest and principal, property tax, maintenance, hvdro, heating and insur- ance. For example, allow $100 a rnonth for property tax, another $100 for heat- ing and utilities and about $50 a month for mainten- ance. Subtract that $250 from your monthly figure and you know what you can afford to carry in monthlv mort gage payments. There are tables whie'n show what it will cost for principal and interest - at varying interest rates each month to carry a mortgage. Here are some examples based on a mort- gage amortized over' 25 years. At 15 per cent, every $1,000 of mortgage would cost $12.47 a month. At 15 1/4 per cent, $12.65; at 15 1/2 per cent, 812.83; at 15 3/4 per cent, $13.01.; and at 16 per cent, $13.20. Let's assume you can afford $500 per month for your mortgage and you could arrange for 15 per cent interest. Your monthly cost for interest and princi- pal would be $12.47 per $1,000. Divide that figure into 500 to find out what size mortgage you can carry. The answer is 40,096. You could afford a W4,000 mort gage. As the interest rates go up, the size of the mortgage you can afford goes down. At 16 per cent, it would be 538,000. Be sure io shop around for the best mort- gage rate you can find. Interest rates vary from lender to lender. Mr. Rumack is with Murray Rumack Stern & Cohen, Chartered Accountants, Toronto. Whitby theatre announces next year's pro gram CONT D FROM PG. 17 auditions. Forty two were cast. The tough job of selec- ting her cast was something which Ms. Hill, because of her vast theatrical ex- perience, takes in her stride. Everyone in "Four Annes" WilI be a polished performer by the time she is doue with them, and the kids will love her for it. The Whitby Theatre Com- pany's slate of productions for the 1980/81 season promises to be as varied and interesting as this past season. The season will commence with a special musical production in September, called "The 1940's Radio Hour"; A touch of nostaligia highlighting events in the entertainment industry during the "40's": This is in addition to three regular plays; "The Innocents", a Victor Ian spine-chiller: "Beckett", telling the story of the twelfth-century Arch- bishop of Canterbury and his dealings with Henry ii of England. "Same Time Next Year", by Canadian author Bernard Slade. This deals with a relationship which develops between two already married (to other people) loyers. A superb comedy. Whitby Theatre Company patrons can look forward to another great season ahead. Whitby Theatre Company will hold its annual general meeting at the theatre in the Centennial Building, Centre St. S., Whitby, Monday, May 26, commencing 8 p.m. Agenda includes election of officers and excerpts from the past sea son's production. Anyone in- terested at ail in joining is welcome. -il OWNER TRANSFERRED, 3 year old 2 storey, garage, professionally finished rec room, walkout to fenced yard, good Whitby location. $57,250. 576-3333 or 683-7377. COURTICE, 8 room brick Century home, 2 baths, cedar deck, 10 acres, Vendor will hold 12% mortgage, asking $105,000. 578-333301r683-7377. OSHAWA, just north of city lmits, Spanlsh style, super custom bungalow,. 2 fireplaces, walkout basement, weil landscaped, 1 acre lot with southern exposure. Vendor wili hoid 10% mortgage for qualified purchaser. Asking $99,500. 576-3333 o01683-7377. PICKERING VILLAGE, 2 storey, 10 year old custom "House That Jack Built", fireplace and wood burning stove, walkout to cedar deck, large mature, treed lot. 10% mortgage tiI 1981. Asking $89,900. 576-3333 or 883-7477. NAIOA TRUT - . e56-33