Question: Compute and Describe for each loan: 1. Payment over term of the loan 2. Nominal Interest Rate Analyze purchase of home with various types of

Compute and Describe for each loan:

1. Payment over term of the loan

2. Nominal Interest Rate

Analyze purchase of home with various types of financing ARM Loans Payment Changes Annually after fixed pe Minimum payment du exceed 7.5% more of 1 payment due before th InterestRateLimit:InterestRateChangesNegativeAmortization9.95%AnnuallywithpaymenNone Negative Amortization None Index Beginning on the first computed based on the month average of the n year LIBOR rate. The twelve months precedi Calculation of Interest Rate Changes The new annual interes and average annual ind period, rounded to the Underwriting Criteria Security for the Loan: Single Family Residence Annual Holding Costs 706 N. Acacia Dr. Fullerton, CA 92831 Real Estate Taxes: $9,423.46 LivingArea:YearBuilt:1,822squarefeet1955Insurance:Utilities:Maintenance:$1,500.00$1,800.00$1,800.00 Room Count: 5/3/2 Purchase Price: $840,000 Assumptions: Holding Period: 10 years Projected Price Appreciation over holding Period (per year): Low High 3.0%5.0% Potential Costs of Sale: 7.0% Inflation Holding Costs: Real Estate Taxes: 2.0% Insurance: 1.75% Utilities:Maintenance:1.75%1.75%

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