The purpose of this project is to help you understand purchasing a home
The purpose of this project is to help you understand purchasing a home. You will make a 10%down payment to avoid escrow costs and finance the balance over 30 years with a fixed loan rate of 4.5%. Payments and compounding will occur monthly. Round all dollar amounts to the nearest cent. Find a home in Westchester that is between $400,000 and $1,000,000 by visitinghttp://www.realtor.com or https://www.zillow.com or some other online real-estate system. Please see the attachment for specific instructions, thank you!
Instruction
Please answer all of the questions. Indicate the Address of home b. What is the asking price of home c. What is the amount financed after 10% down payment d. Find the Monthly payment needed to finance home e. Find the total cost to repay loan if regular payments are made for the full 30 years (the loan does not include the down payment) f. What is the amount of interest paid if the loan goes full term? g. If you put 20% down payment and take a loan for the balance for 30 years. What will be the monthly payment? h. What happens to all the questions above if you take a loan only for 15 years? i. How much interest will you save if you pay back the loan in 15 years rather than 30 years? j. Reflection Did this project enhance your understanding of annuity? What is your opinion about different terms of mortgage?
