You are wanting to buy a home that costs $225,000 in a small city in the...

 

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You are wanting to buy a home that costs $225,000 in a small city in the U.S. You are a young first time home owner who has been 2 years in your job and will probably be transferred in the next 3 years. Which types of mortgages would give you the lowest overall cost over your three-year investment period? . . Based on the scenario economy and mortgage interest rates, what type of loan is preferable? What would the cost difference be for a 30-year fixed- rate fully amortized conventional loan or an ARM at today's interest rates? Explain your answer. You are wanting to buy a home that costs $225,000 in a small city in the U.S. You are a young first time home owner who has been 2 years in your job and will probably be transferred in the next 3 years. Which types of mortgages would give you the lowest overall cost over your three-year investment period? . . Based on the scenario economy and mortgage interest rates, what type of loan is preferable? What would the cost difference be for a 30-year fixed- rate fully amortized conventional loan or an ARM at today's interest rates? Explain your answer.

Answer rating: 100% (QA)

Given the scenario provided where you anticipate being transferred within the next three years it would be advisable to consider mortgage options that ... View the full answer