Part 1 (22 points)

Answer the following using the information on the project handout. Show all work. Use complete sentences when explaining your answers.

Points

Steps

4

1. Determine the maximum amount the couple has for a down payment. Explain your answer.

2

2. Use the amount you found in part A to find the price of a house they could afford if that amount is a 10% down payment

2

3. Use the amount you found in part A to find the price of a house they could afford if that amount is a 20% down payment

6

4. Use the 28%-36% rule (in the list of useful information on project) to determine what their maximum monthly mortgage payment should be.

3

5. Find current information on 30-year and 15-year mortgage rates from three banks and or credit unions. Give the current rate, the APR for that rate, name of the institution, and the date you found this information. Put the links of the websites used below the given table.

Bank/Institution	30-year rate	30-year APR	15-year rate	15-year APR	Date

Websites used:

3

6. In your own words explain what APR is and why it is different than the published interest rate. If you use a website or websites to get this information, make sure to list them along with the date accessed after your explanation.

1

7. Give the bank/institution and rate you would use for a 15-year mortgage

1

8. Give the bank/institution and rate you would use for a 30-year mortgage

MAT101 Housing Project MAT101 Housing Project