B19 fr Down Payment D E F G H 1 J K L om + Home Mortgage Problem Assume that you are real estate agent working with a client Amy who is shopping for a house. Amy is interested in two homes: a house on the lake, and a dream city condo. She wants to know her monthly payment for these two options. 8 Clue: Monthly payment includes principle, interest, homeowners insurance, property taxes, and condo association fees (if any). 9 10 1 Please tell him how much his monthly payment would be on each of these options. 11 12 Option One: House on the Lake 13 House Price S 14 Homeowners Insurance $ Note: Assume the value of the home does not change and the bank will allow you to 15 include insurance, taxes, and condo association fees into the monthly payment Property Taxes $ 16 17 18 19 Down Payment $ 20 21 22 Mortgage Rate 23 Assume no early payments and ontime payments. Loan Term 24 Payments Per Year 25 Monthly Payment Amount INSERT $ HERE Option Two: Dream City Condo 688,450 House Price $ 0.45 per $100 Annually Homeowners Insurance $ 0.60 per $100 Annually Property Taxes $ Condo Association Fees $ 619,900 0.58 per $100 Annually 0.85 per $100 Annually 295 Per month 95,000 Down Payment Buyer Incentives (Discounts) $ $ 95,000 22,500 3.75% APY (Rate) 30 Years 12 Mortgage Rate Loan Term Payments Per Year Monthly Payment Amount 3.75% APY (Rate) 30 Years 12 INSERT $ HERE For question ten, which option has the lowest monthly payment? INSERT OPTION # HERE 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 1 3 +