1) You will find a home for sale in the Metropolitan Detroit area that you would...

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1) You will find a home for sale in the Metropolitan Detroit area that you would like to buy. You can be realistic or make an aspirational choice, the cost must be at least $20,000 and no more than $250,000. (you may use Zillow.com or any other site) 2) Record the asking price of the home, and show me picture of home. 3) Record where you found the heuse for sale in the citations If it is on the MLS system, then record the MLS number. Note: Typically, when buying a house there is some negotiation involved. There are also fees to make sure the property is actually owned by the seller, fees to the company issuing the mortgage, fees to an appraiser, fees to the county and so on For the perpose of this project we will assume that the seller has agreed to pick up the fees and that you agree to pay the asking prke. 4) Amume that you will finance 80% of the asking price of the bome. Find a bank that is offering both 30-year fixed rate loans and 15-year fixed rate loans with 0 points. (you may use bankrate.com) (NO NEED TO ENTER PERSONAL INFO) 5) Record the rates. 6) Record where you found the rates and the date on which you found them in your citations. 7) Asmme that it took you 10 years to save your down payment on the home. Note that you are financing 80% of the asking price of the home, so you saved 20% of the asking price of the home for the down payment. Find a bank that offers a competitive savings account. 8) Record the APR, If the bank only displays the APY you may do a web scarch for "APY to APR calculator" that will compute the APR for you, 9) Record where you found the APR and the date on which you found it in your citations 10)f you utilized an APR calculator, record where you found the calculator in your citations 11) Make sure you include EVERYTHING in the following "Work to Include" sections below for Part 1, Part 2, and Part 3. Work to Includes Answer ALL of the following (etcept the tables) in paragrapha with complete sentencer PARTI Saving fir the Down Payment • Using 20% ofthe purchase price as the down payment, bow much is the dows paytment for the home you have chosen, Inclade your equation with your anrwer ina sentence. •What bank di4 yeu choose? What rate did it report? ls this an APR or an APY Ireis m APY, what website did you e to convert the APY to an APR? What is the APRT •Uuing your down paymod the goal, 10 years as the time it lok you to reach your goul and the APR fr the sav cunt that you found, compute the monthly deposits that were made into the savings account cach month to reach the goal of 20% of the purchase price for the down payment. Include your equation with your final answer in a sentence. PART II: 30-year Loan 1) Using an initial principal of 80% of the purchase price, a 30-year term, and the interest rate you found for a 30-year loan create an amortization table for the loan. Label your columns: Payment number (month), Payment, Applied to interest, Applied to balance owed, and Outstanding balance. You must use a spreadsheet and not a website. You can, of course, check your work on a lender's website. 2) How much total interest would you pay for the loan? 3) What percent of your total payments would go to interest? PART III: 15-year Loan 1) Using an initial principal of 80% of the purchase price, a 15-year term, and the interest rate you found for a 15-year loan create an amortization table for the loan. Label your columns: Payment number (month), Payment, Applicd to interest, Applied to balance owed, and Outstanding balance. You must use a spreadsheet and not a website. You can, of course, check your work on a lender's website. 2) How much total interest would you pay for the loan? 3) What percent of your total payments would go to interest? CRITICAL THINKING 1) Compare the 30-year loan and the 15-year loan (Part II & Part III). How much less interest would you pay for the 15-year loan than you would for the 30-year loan? 2) Did anything surprise you about Part II # 3 and the comparison above? Explain why or why not. 3) Did anything surprise you about Part III #3 and the comparison above? Explain why or why not. 1) You will find a home for sale in the Metropolitan Detroit area that you would like to buy. You can be realistic or make an aspirational choice, the cost must be at least $20,000 and no more than $250,000. (you may use Zillow.com or any other site) 2) Record the asking price of the home, and show me picture of home. 3) Record where you found the heuse for sale in the citations If it is on the MLS system, then record the MLS number. Note: Typically, when buying a house there is some negotiation involved. There are also fees to make sure the property is actually owned by the seller, fees to the company issuing the mortgage, fees to an appraiser, fees to the county and so on For the perpose of this project we will assume that the seller has agreed to pick up the fees and that you agree to pay the asking prke. 4) Amume that you will finance 80% of the asking price of the bome. Find a bank that is offering both 30-year fixed rate loans and 15-year fixed rate loans with 0 points. (you may use bankrate.com) (NO NEED TO ENTER PERSONAL INFO) 5) Record the rates. 6) Record where you found the rates and the date on which you found them in your citations. 7) Asmme that it took you 10 years to save your down payment on the home. Note that you are financing 80% of the asking price of the home, so you saved 20% of the asking price of the home for the down payment. Find a bank that offers a competitive savings account. 8) Record the APR, If the bank only displays the APY you may do a web scarch for "APY to APR calculator" that will compute the APR for you, 9) Record where you found the APR and the date on which you found it in your citations 10)f you utilized an APR calculator, record where you found the calculator in your citations 11) Make sure you include EVERYTHING in the following "Work to Include" sections below for Part 1, Part 2, and Part 3. Work to Includes Answer ALL of the following (etcept the tables) in paragrapha with complete sentencer PARTI Saving fir the Down Payment • Using 20% ofthe purchase price as the down payment, bow much is the dows paytment for the home you have chosen, Inclade your equation with your anrwer ina sentence. •What bank di4 yeu choose? What rate did it report? ls this an APR or an APY Ireis m APY, what website did you e to convert the APY to an APR? What is the APRT •Uuing your down paymod the goal, 10 years as the time it lok you to reach your goul and the APR fr the sav cunt that you found, compute the monthly deposits that were made into the savings account cach month to reach the goal of 20% of the purchase price for the down payment. Include your equation with your final answer in a sentence. PART II: 30-year Loan 1) Using an initial principal of 80% of the purchase price, a 30-year term, and the interest rate you found for a 30-year loan create an amortization table for the loan. Label your columns: Payment number (month), Payment, Applied to interest, Applied to balance owed, and Outstanding balance. You must use a spreadsheet and not a website. You can, of course, check your work on a lender's website. 2) How much total interest would you pay for the loan? 3) What percent of your total payments would go to interest? PART III: 15-year Loan 1) Using an initial principal of 80% of the purchase price, a 15-year term, and the interest rate you found for a 15-year loan create an amortization table for the loan. Label your columns: Payment number (month), Payment, Applicd to interest, Applied to balance owed, and Outstanding balance. You must use a spreadsheet and not a website. You can, of course, check your work on a lender's website. 2) How much total interest would you pay for the loan? 3) What percent of your total payments would go to interest? CRITICAL THINKING 1) Compare the 30-year loan and the 15-year loan (Part II & Part III). How much less interest would you pay for the 15-year loan than you would for the 30-year loan? 2) Did anything surprise you about Part II # 3 and the comparison above? Explain why or why not. 3) Did anything surprise you about Part III #3 and the comparison above? Explain why or why not.

Answer rating: 100% (QA)

Asking Price of home 498960 Brush St No2831 Detroit MI 48201 80 of cost 399168 30 year Fixed rate 425 Mar 24 2018 ZillowInc 15 year Fixed rate 369 Mar 24 2018 ZillowInc httpswwwzillowcommortgageratesm... View the full answer