For this project you will have to contact a local bank and get information about their mortgage products You would like to finance the purchase of a new house The house is worth $390,000 And you want to finance it for 30 years (I know that the rates you get will depend on your credit score, but ask about the different products assuming you have outstanding credit Do not give the banks any of your personal info ) You are putting down 25 of the house value How does the payment compare to the one you calculated Loan Amount Assume that you will finance 75 of the purchase of the home plus closing costs (This means that to your loan amount (75 Value of the house Closing Costs) On an excel worksheet calculate the following SCENARIO 1 Calculate the monthly rate that will be used to pay your loan How does this compare to the amount given by the bank Is it different or is it the same Number of Periods Monthly Payment How much will you have to pay in interest payments throughout the life of the loan (total interest paid) What is the effective Rate What is the principal amount left to pay half way though the life of the loan (15 years) Please help with the missing parts of the chart Is what I already have filled out in the chart correct Scenario Analysis In order to save time and effort, the easiest way to do this is to copy your entire worksheet onto another one of the tabs in the workbook (Look at instructions on how to do this below) SCENARIO 2 Based on Scenario 1, what happens to your effective rate, monthly payment and total interest throughout the life of the loan if, a) your rate (APR) drops by 0 5 and, b) what happens if it increases by 0 5 Mortgage Rate 3 86 To Part 1 Total Points 30 Bank A Scenario 1 (10points) Bank Name U S Eagle Federal Credit Union $ Closing Costs Home Value 8,547 00 $ 390,000 00 Amount Financed $ 301,047 00 Loan Amount (Amount Financed Closing Costs) APR $ 309,594 00 No of Years 30 No of Periods (Months) 360 Effective Rate Monthly Rate Monthly Payment How does the payment you calculated compare to the one given by the bank Total Interest Amount ($) Principal Outstanding half way throught the loan

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For this project you will have to contact a local bank and get information about their mortgage products. You would like to finance the purchase

For this project you will have to contact a local bank and get information about their mortgage products. You would like to finance the purchase of a new house. The house is worth $390,000. And you want to finance it for 30 years (I know that the rates you get will depend on your credit score, but ask about the different products assuming you have outstanding credit. Do not give the banks any of your personal info….). You are putting down 25% of the house value. How does the payment compare to the one you calculated?

Loan Amount: Assume that you will finance 75% of the purchase of the home plus closing costs. (This means that to your loan amount (75% Value of the house + Closing Costs)

Mortgage Rate: 3.86% Bank A U.S. Eagle Federal Credit Union 8,547.00 390,000.00 301,047.00 309,594.00 Part 1 Total Points: 30

Mortgage Rate: 3.86% Bank A Part 1 Total Points: 30 Scenario 1 (10 points) Bank Name Closing Costs Home Value Amount Financed

On an excel worksheet calculate the following:

SCENARIO 1

Calculate the monthly rate that will be used to pay your loan. How does this compare to the amount given by the bank. Is it different or is it the same?
Number of Periods
Monthly Payment
How much will you have to pay in interest payments throughout the life of the loan (total interest paid)?
What is the effective Rate?
What is the principal amount left to pay half way though the life of the loan (15 years)?

Please help with the missing parts of the chart. Is what I already have filled out in the chart correct?

Scenario Analysis

In order to save time and effort, the easiest way to do this is to copy your entire worksheet onto another one of the tabs in the workbook. (Look at instructions on how to do this below)

SCENARIO 2

Based on Scenario 1, what happens to your effective rate, monthly payment and total interest throughout the life of the loan if, a) your rate (APR) drops by 0.5%? and, b) what happens if it increases by 0.5% ?