Option 1: Purchase price: 350,000 Down Payment:25% Term: 30 yrs Loan Amount: N/A Interest Rate: 3.5% Fixed
Question:
Option 1:
Purchase price: 350,000
Down Payment:25%
Term: 30 yrs
Loan Amount: N/A
Interest Rate: 3.5% Fixed
Points: 0%
Monthly Payment: N/A
LTV: N/A
Option 2:
Purchase price: 350,000
Down Payment: 20%
Term: 30 yrs
Loan Amount: N/A
Interest Rate: 3.0% Fixed
Points: 1.5%
Monthly Payment: N/A
LTV: N/A
Option 3:
Purchase price: 350,000
Down Payment: 15%
Term: 30 years
Loan Amount: N/A
Interest Rate: 2.75% - 5/1 ARM
Points: 0%
Monthly Payment: N/A
LTV:N/A
Based off the Information:
1) Assuming the home is appraised at $350,000, which is the selling price, what is the Loan to Value for each of the loan options?
2) Which loan option do you think would be best if they want the lowest monthly mortgage principal and interest payment?
3) It took 5 years to save for the down payment on their home, they saved $1000 a month, and had $70,000 at the end of the 5 years. What interest rate did they earn on their savings? Show calculations
What are the two most important documents that the Wilsons will sign during the mortgage closing? What are the names of each document? What is the purpose of each? Explain.
What is the difference between the interest and the APR? Define each. Which Regulation ensures that borrowers know the difference between the interest rate they are paying and the APR?
There are two federal Regulations (Acts) which protects people against discrimination because of their race (as a protected class). What are the names of each of these Regulations? What do they do? How do they differ? Which Regulators regulates each of these Regulations.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill