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DIRECTIONS: The individuals in the following scenarios are currently independent adults, looking to buy a home. Each of them, fortunately, took a personal finance class

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DIRECTIONS: The individuals in the following scenarios are currently independent adults, looking to buy a home. Each of them, fortunately, took a personal finance class in high school and learned the value of doing some preliminary work on a mortgage calculator before determining their price range. Use the Bankrate.com Mortgage Calculator for this activity. Read through their scenarios, plug the provided information into the mortgage calculator and then answer the follow-up questions. *Hint: Push "Show Amortization Schedule" on the calculator screen to see more details about each loan. Note: When answering questions about how much monthly payments will be, include the cost of insurance and taxes. TREVOR: Wants a one bedroom townhouse in a trendy new development downtown; average cost is $145,000 Is preapproved for a 4.28% interest rate on a 30-year fixed mortgage Has saved $7,500 for a down payment 1. What will Trevor's monthly payment be? 2. How much total interest will he pay over the course of the mortgage? (Hint: Click on "Amortization Schedule" then the expand button at the bottom so you can scroll through all 30 years.) 3. If Trevor waited until he had $30,000 saved for a down payment, a. What will his monthly payment be? b. How much total interest will he pay over the course of the mortgage? C. How much money did he save by paying an extra $22,500 upfront? CARLA: Has been renting a two-bedroom apartment with her husband and 3 kids; wants to move into a three-bedroom home instead Took her five years, but she has saved $20,000 for a down payment Homes in her small town are typically selling for $75,000 to $95,000 Is preapproved for a 2.89% interest rate on a 30-year fixed mortgage Needs her monthly payment to be less than $400 Rounded to the nearest $500, what's the most expensive house Carla could buy? 5. How much total interest will she pay over the course of the mortgage for this house

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