Case Study Scenario

Different banks sell insured mortgages (5% to 20% down payment) differently. You are currently working with Adede to advise her regarding a mortgage for a home with a purchase price of $350,000.

You want to ensure that you are able to recommend the best mortgage plan to Adede and have the facts to back your recommendation. To do this, you have chosen to research and review three different bank websites. For each bank, you want to look at the following:

• The mortgage rates (1-, 3-, and 5-year terms)
• The benefits and features of the mortgage
• The way the bank presents their mortgage products
• What information the banks present to create a better understanding of mortgages in general:
  • Rules
  • Fixed vs. variable rates
  • Open. vs. closed mortgage
  • Terms
  • Amortization periods
  • Mortgage affordability calculators
  • Rent or buy calculators
  • Down payment calculators
  • Mortgage payment calculators

Assignment Instructions

1. Read through the above case study scenario.
2. Conduct online research of the mortgage options at three banks of your choice. For each, bank ensure that you look at each of the features listed in the above case study scenario.
3. Address each of the following:
   • A brief overview of the mortgage features at each bank
   • What bank would you ultimately recommend to Adede? Why?
   • What sales aids did you encounter during your research that were the most effective? Why were they the most effective?
   • If you could build one online bank that offered the best features of all three banks you researched, what would it look like? Why would you choose these features?*