FORMAT FOR MGF 1107 PROJECT BUYING A HOUSE Page 1 1. Include a picture of your dream home, which includes the price, location, address, etc. (10pts.) Page 2 1. Determine the Principal amount calculate this value with a 20% down payment on the purchase price. (10pts.) 2. Calculate the Regular Monthly Mortgage Payment- use the formula shown in class (based on a 30 year mortgage and a 6.5% annual interest rate). (15pts.) 3. Calculate extra homeowner payments - include: annual taxes, homeowner's insurance, monthly association fee, etc. (10pts.) 4. Closing Costs list the item and the cost of each item. Then show the total closing amount. (10pts.) 5. Amount of the Cashier's check - this is the amount of money the buyer must have at closing. It includes the 20% down payment on the home and the total closing costs. (10pts.) Page 3 1. Include an Amortization Schedule - complete for the first year of the loan. (25pts.) Page 4 1. Can I afford my dream home? - write a one page summary with an explanation as if you can afford or not afford your dream home (explain why or why not). (10pts.) Note: The entire Project must be typed, the pages stapled, and the project must follow the format shown above and turned in on time. I will not accept any project that does not follow the above format. Also, any project turned in late will have 10 points deducted for each day turned in late. FORMAT FOR MGF 1107 PROJECT BUYING A HOUSE Page 1 1. Include a picture of your dream home, which includes the price, location, address, etc. (10pts.) Page 2 1. Determine the Principal amount calculate this value with a 20% down payment on the purchase price. (10pts.) 2. Calculate the Regular Monthly Mortgage Payment- use the formula shown in class (based on a 30 year mortgage and a 6.5% annual interest rate). (15pts.) 3. Calculate extra homeowner payments - include: annual taxes, homeowner's insurance, monthly association fee, etc. (10pts.) 4. Closing Costs list the item and the cost of each item. Then show the total closing amount. (10pts.) 5. Amount of the Cashier's check - this is the amount of money the buyer must have at closing. It includes the 20% down payment on the home and the total closing costs. (10pts.) Page 3 1. Include an Amortization Schedule - complete for the first year of the loan. (25pts.) Page 4 1. Can I afford my dream home? - write a one page summary with an explanation as if you can afford or not afford your dream home (explain why or why not). (10pts.) Note: The entire Project must be typed, the pages stapled, and the project must follow the format shown above and turned in on time. I will not accept any project that does not follow the above format. Also, any project turned in late will have 10 points deducted for each day turned in late