Unit 2: Borrowing - Using Your Future Income Today LG6-Understand how to shop and determine borrowing costs for large purchases Q2 Listed Price Fixed Rate Mortgage Years Down Payment $275,000 4.25% 30 20.00% Q4 Listed Price Fixed Rate Mortgage Years Down Payment $275,000 3.125% 15 20.00% 05 Listed Price Fixed Rate Mortgage Years Down Payment PMI $375,000 4.25% 30 10.00% 1.00% Q2 Jessica makes the down payment and takes out the loan described, what will be the monthly payment? Price Down Payment NPER RATE PV PMT FV 275000 20%- 55,000 0 Q3 Jessica makes the down payment and takes out the loan described, what will be the total cost of the house? Total Payment Total Costs Q4 What would be the total cost of the house if she took out a 15-year mortgage at a lower rate? Price Down Payment NPER RATE PV PMT FV Total Payment Total Costs 0 Application Time! Jessica would like to purchase a home - she wants to avoid PMI insurance. Don't worry about taxes and insurance for any of these questions, just keep in mind that those would need to be considered as well (1) you will need to pull the data from the "Info Sheet" and (2) solve for the missing information. What if Jessica can only make a smaller down payment, what would the first monthly payment be for the 30 year mortgage? 5 Price Down Payment NPER RATE PV PMT FV PMI Monthly PMI First Monthly PMT 0 Unit 2: Borrowing - Using Your Future Income Today LG6-Understand how to shop and determine borrowing costs for large purchases Q2 Listed Price Fixed Rate Mortgage Years Down Payment $275,000 4.25% 30 20.00% Q4 Listed Price Fixed Rate Mortgage Years Down Payment $275,000 3.125% 15 20.00% 05 Listed Price Fixed Rate Mortgage Years Down Payment PMI $375,000 4.25% 30 10.00% 1.00% Q2 Jessica makes the down payment and takes out the loan described, what will be the monthly payment? Price Down Payment NPER RATE PV PMT FV 275000 20%- 55,000 0 Q3 Jessica makes the down payment and takes out the loan described, what will be the total cost of the house? Total Payment Total Costs Q4 What would be the total cost of the house if she took out a 15-year mortgage at a lower rate? Price Down Payment NPER RATE PV PMT FV Total Payment Total Costs 0 Application Time! Jessica would like to purchase a home - she wants to avoid PMI insurance. Don't worry about taxes and insurance for any of these questions, just keep in mind that those would need to be considered as well (1) you will need to pull the data from the "Info Sheet" and (2) solve for the missing information. What if Jessica can only make a smaller down payment, what would the first monthly payment be for the 30 year mortgage? 5 Price Down Payment NPER RATE PV PMT FV PMI Monthly PMI First Monthly PMT 0