After college, you decide that you want to purchase a house with 2 other friends. Take the amount that you budgeted for housing back in Module 2 and multiply it by 3 to determine the monthly payment that you'd have to split between the 3 of you (report this number in part 1 below). Then go to the Bankrate Mortgage Calculator and answer the following questions in a Word document for your submission:

1. 1.How much can you budget for your monthly mortgage payment (including escrow)?.
2. 2.What is the home price you can afford? Determine this by adjusting the home price box. Keep in mind that the monthly payment in this Bankrate calculator includes escrow fees for homeowner's insurance and real estate taxes. Assume an interest rate of 6.5%.
3. 3.How much should you and your friends have saved for a down payment if you want to put 20%?
4. 4.Download the Amortization Table and enter in your closing price and interest rate. The amortization table will change as you fill in your numbers. The payment calculated here includes only principal and interest and excludes escrow. This is why the number is different from the Bankrate calculator.   You will have to fill in "Original Interest Due" yourself. It is the number that is calculated in the "Interest Due with Prepayment" cell just underneath.  Copy and paste that cell into B8, and when the Paste Options show up on the bottom right of the cell, click into it and select "Values and Number    Formatting." Additional monthly prepayment should be $0 at the moment.
   •      Report the original interest due and discuss in your Word submission file.
5. 5.Now, include an additional monthly prepayment of your choosing in cell B7 of the Excel amortization table. How much faster will you pay off the loan with this prepayment? How much interest will you save? Report and discuss these numbers in your Word submission

Answer rating: 100% (QA)

Answers to your questions 1 Based on my budget for housing in Module 2 my monthly mortgage payment w... View the full answer