Case #3: Buying and Selling a House (26 marks). Buying a home is the biggest purchase you will likely ever make, and special attention needs to be paid to certain steps. Q1. Briefly identify and describe some key considerations and steps in the home-buying process. Q2. Should you Rent or Buy your Home? Q3. Consider a $30,000 fully amortizing loan with a term of five years and a fixed interest rate of 12%. Payments are made on a yearly basis. a) What is the size of each of the payments? b) Calculate the breakdown between interest and principal paid each year, i.e., construct a loan amortization schedule for a $30,000. Answers