1. Your assignment is to research the various types of financing deals currently being offered for...
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1. Your assignment is to research the various types of financing deals currently being offered for a hypothetical condominium you plan to buy. The following assumptions apply to this project: . The purchase price of the condo you plan to buy is $200,000. o The condo was recently appraised for $220,000. • You plan to make a 25% down payment ($50,000) and are seeking a $150,000 mortgage. o You have a job that qualifies you for that size mortgage. 2. As a team, your assignment is to compare the current interest rates, costs, and features associated with a 15-year fixed-rate mortgage, a 30-year fixed-rate mortgage, and an adjustable-rate mortgage. 3. Each team member should select 1 financial institution and get data on their mortgages. You may need to call or visit the institution and talk to a banker, explaining that you are doing a class project and need information on their mortgage programs. Here are the questions each team member needs to answer so you can compare the different mortgage options: What are the current interest rates and discount points of the 15- and 30-year fixed-rate mortgages? . What are the monthly payments of the fixed-rate mortgages? What is the initial (teaser) rate, discount points, adjustment period, rate caps. margin, and index for the adjustable-rate mortgage? Q o What are the monthly payments of the fixed-rate mortgages? What is the initial (teaser) rate, discount points, adjustment period, rate caps, margin, and index for the adjustable-rate mortgage? o What are the fees or charges for the loan application, property appraisal, survey, credit report, inspections, title search, title insurance, and document preparation? o What other charges or fees can be expected at closing? 4. Prepare a Mortgage Summary document submit it to the Mortgage Summary Dropbox. Your summary document should include: 1. Each financial institution that was researched and the group member who did the research 2. The answer to each question for each financial institution 3. A recommendation of which type of mortgage does your group think is the best deal at this time and why 4. A recommendation of which financial institution your group would choose for the mortgage and why 1. Your assignment is to research the various types of financing deals currently being offered for a hypothetical condominium you plan to buy. The following assumptions apply to this project: . The purchase price of the condo you plan to buy is $200,000. o The condo was recently appraised for $220,000. • You plan to make a 25% down payment ($50,000) and are seeking a $150,000 mortgage. o You have a job that qualifies you for that size mortgage. 2. As a team, your assignment is to compare the current interest rates, costs, and features associated with a 15-year fixed-rate mortgage, a 30-year fixed-rate mortgage, and an adjustable-rate mortgage. 3. Each team member should select 1 financial institution and get data on their mortgages. You may need to call or visit the institution and talk to a banker, explaining that you are doing a class project and need information on their mortgage programs. Here are the questions each team member needs to answer so you can compare the different mortgage options: What are the current interest rates and discount points of the 15- and 30-year fixed-rate mortgages? . What are the monthly payments of the fixed-rate mortgages? What is the initial (teaser) rate, discount points, adjustment period, rate caps. margin, and index for the adjustable-rate mortgage? Q o What are the monthly payments of the fixed-rate mortgages? What is the initial (teaser) rate, discount points, adjustment period, rate caps, margin, and index for the adjustable-rate mortgage? o What are the fees or charges for the loan application, property appraisal, survey, credit report, inspections, title search, title insurance, and document preparation? o What other charges or fees can be expected at closing? 4. Prepare a Mortgage Summary document submit it to the Mortgage Summary Dropbox. Your summary document should include: 1. Each financial institution that was researched and the group member who did the research 2. The answer to each question for each financial institution 3. A recommendation of which type of mortgage does your group think is the best deal at this time and why 4. A recommendation of which financial institution your group would choose for the mortgage and why
Expert Answer:
Answer rating: 100% (QA)
1 answer The current interest rates and discount points of the 15 and 30year fixedrate mortgages are 15year fixedrate mortgage Interest rate 3875 Disc... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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