# Math help asap please - 65218

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• From: Mathematics,
• Due on: Tue 03 Jun, 2014 (11:40pm)
• Asked on: Tue 03 Jun, 2014
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Instructions: This is the third part of a course-long project. Show all work for each section. Any paragraphs should be typed and written in complete sentences.  Use Times New Roman, 12-point font and double space.  Cite any resource(s) you use – click the course research guide for helpful information on APA formatting.

Part III: Finding Mortgage Payments (35 pts.)

In this scenario, you cannot pay cash for your home (Refer to your answers in House Project, Part II) and you will need to get a loan from a financial institution.  Research and find a current interest rate for both a 30-year fixed mortgage and a 15-year fixed mortgage through your bank or other source such as http://www.bankrate.com/mortgage.aspx.

Note: For all of House Project Part III, the calculated loans will not require a PMI payment.

1. Record the interest rate for each loan from the bank of your choosing (remember interest rates are percentages):

Loan 1: 30-year fixed mortgage (2 pts.):__4.375%_______

Loan 2: 15-year fixed mortgage (2 pts.):__3.625%_______

Cite your source (1 pt.):____ https://www.penfed.org/____________________

1. Suppose you decide to make a down payment of 20% of the purchase price for the 30-year fixed mortgage and 10% of the purchase price for the 15-year fixed mortgage.

1. Calculate the down payment for your house for the 30-year fixed mortgage. Show all work. (2 pts.)

1. How much will you need to finance from the bank for the 30-year fixed mortgage if you pay the 20% down payment?  Show all work. (2 pts.)

1. Calculate the down payment for your house for the 15-year fixed mortgage.  Show all work. (2 pts.)

1. How much will you need to finance from the bank for the 15-year fixed mortgage if you pay the 10% down payment?  Show all work. (2 pts.)

1. Calculate loan option costs.

1.  Loan 1:  30-year fixed mortgage with 20% down payment.

• Use the TVM Solver on your TI-83/84 calculator to get the monthly payment for each mortgage.

N = _______________

I % = ______________

PV = ______________

PMT = _____________

FV = ______________

P/Y = _____________

C/Y = _____________

PMT (set at End)

Monthly payment for the 30-year fixed mortgage (3 pts.)  = ___________

• Closing costs can be an unexpected expense when buying a home. List the items included when calculating closing costs and include your source (2 pts.)

• Assume the cost of the items you identified above equals \$2700. What is the total you could expect to pay at closing for this loan option (i.e. closing costs, down payment, and first month’s mortgage) Show all work. (2 pts.)?_____________

1.  Loan 2:  15-year fixed mortgage with 10% down payment.

• Use the TVM Solver on your TI-83/84 calculator to get the monthly payment for each mortgage.

N = ________________

I % = _______________

PV = _______________

PMT = _____________

FV = _______________

P/Y = _______________

C/Y = _______________

PMT (set at End)

Monthly payment for the 15-year fixed mortgage (3 pts.) = ___________

• Using the same \$2700 for closing costs mentioned in part a, what is the total you could expect to pay at closing for this loan option.  Show all work. (2 pts.)?_____________

Suppose your bank were offering a special deal where you could put 0% down for a 30-year fixed loan but the interest rate was 1.5% higher (penalty for putting nothing down) than the interest rate for the 30-year fixed with 20% down.  Calculate the mortgage payment for this situation.

1. Loan 3:  30-year fixed mortgage (with penalty)

• Use the TVM Solver on your TI-83/84 calculator to get the monthly payment for each mortgage.

N = ________________

I % = _______________

PV = _______________

PMT = _____________

FV = _______________

P/Y = _______________

C/Y = _______________

PMT (set at End)

Monthly payment for the 30-year fixed mortgage (with penalty) (3 pts.) = ___________

• Using the same \$2700 for closing costs mentioned in part a, what is the total you could expect to pay at closing for this loan option. Show all work.  (2 pts.)?____________

Suppose your bank were offering a lower interest rate for a 15-year fixed loan if you pay 4 points (4% of the loan amount) as part of your closing costs (not rolled into your mortgage amount).  You are still required to put 10% down for a 15-year fixed loan but your interest rate is now 1.0% lower. Calculate the mortgage payment for this situation.

1. Loan 4:  15-year fixed mortgage (with points)

• Use the TVM Solver on your TI-83/84 calculator to get the monthly payment for each mortgage.

N = ________________

I % = _______________

PV = _______________

PMT = _____________

FV = _______________

P/Y = _______________

C/Y = _______________

PMT (set at End)

Monthly payment for the 15-year fixed mortgage (with points) (3 pts.) =    __________

• Using the same \$2700 for closing costs mentioned in part a, what is the total you could expect to pay at closing for this loan option. Show all work. (2 pts.)?____________
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