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You are looking to buy a house in St. Joseph County and have narrowed down specific townships and are looking at homes have maximum purchase price of $320,000. You expect to borrow 80% of the purchase price amount (20% will be your down payment). Your bank, 2nd Force Bank, is offering you an interest rate of 5.5% for a 30-year fixed loan. The bank also pays property taxes on behalf of the customers and includes those payments as equal monthly amounts in the monthly mortgage bill. Property tax is based on "Assessed Value of home" which is typically 75% of the purchase value of the home. The table below shows Property Tax rate for various townships you are considering. Your task is to create a Total monthly bill model. Total Monthly Bill Monthly Payments towards loan + Monthly Property tax payments. Model should accommodate for that fact that you do not know which township you will end up choosing. o You can use a lookup function or nested IF functions to build your formula for the variation in property tax rates across townships. Please do not use IFS. All three numbers should be separately visible in your model. Model should be flexible enough allow user to change price, interest rate and number of years on the loan (After all, you might be able to find better deals on mortgage or find your dream home cheaperl) Property Tax Rate Chart Township Property Tax Rate Clay German Greene Madison Portage Osceola 2.74% 2.73% 2.73% 1.77% 3.03% 2.43% You are looking to buy a house in St. Joseph County and have narrowed down specific townships and are looking at homes have maximum purchase price of $320,000. You expect to borrow 80% of the purchase price amount (20% will be your down payment). Your bank, 2nd Force Bank, is offering you an interest rate of 5.5% for a 30-year fixed loan. The bank also pays property taxes on behalf of the customers and includes those payments as equal monthly amounts in the monthly mortgage bill. Property tax is based on "Assessed Value of home" which is typically 75% of the purchase value of the home. The table below shows Property Tax rate for various townships you are considering. Your task is to create a Total monthly bill model. Total Monthly Bill Monthly Payments towards loan + Monthly Property tax payments. Model should accommodate for that fact that you do not know which township you will end up choosing. o You can use a lookup function or nested IF functions to build your formula for the variation in property tax rates across townships. Please do not use IFS. All three numbers should be separately visible in your model. Model should be flexible enough allow user to change price, interest rate and number of years on the loan (After all, you might be able to find better deals on mortgage or find your dream home cheaperl) Property Tax Rate Chart Township Property Tax Rate Clay German Greene Madison Portage Osceola 2.74% 2.73% 2.73% 1.77% 3.03% 2.43%
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Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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