in this lab, we will compare 3 different loan options. Suppose that you are buying a house for $205,000. The loan is at a fixed APR of 3.5% for 30 years.

Option 1: Making a down payment

1. If a 10% down payment is required, calculate this amount: ______________

2. What amount remains to be financed (this will be your loan amount)? _____________

3. Use the "Loan Payment Formula" to calculate your monthly payment: ______________

(Note that property tax and homeowner's insurance will usually be added to the monthly payment, but we will look at just the payment on the principal for comparison purposes.)

4. A table of principal and interest payments over the life of a loan is called an amortization table. Amortization tables can be built by hand but are ideally built with a spreadsheet or using an online tool. Go to Canvas and use the "Amortization Table Spreadsheet for Chapter 4 Lab" to complete the Amortization Table below.

5. Explain two interesting things you notice from looking at the amortization table. In order to receive full credit, you must use complete sentences.

6. Use the amortization table and record how much total interest you paid. ___________

7. Calculate the total you paid over the life of the loan (Remember you paid 10% down, so add that in!). __________

5. Explain two interesting things you notice from looking at the amortization table. In order to receive full credit, you must use complete sentences.

6. Use the amortization table and record how much total interest you paid. ___________

7. Calculate the total you paid over the life of the loan (Remember you paid 10% down, so add that in!). __________