Hello please help me with mortgage assignment

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FINA10025 Topics in Financial Planni Mortgage Assignment Due: SLATE Dropbox (beware of brutal late penalties!) Marking: Assignment is worth 10% of your final grade. The maximum mark is 16 Plagiarism: All answers must be in your own words. Any evidence of plagiarism NOTES: - CHANGE THE NAME OF THIS SPREADSHEET TO YOUR NAME - ANSWER ALL QUESTIONS IN THE APPROPRIATE TABS OF THIS SPREAD 1 Look at the \"Question 1 b to f \" tab. In the columns to the right of your name I've assigned you some personal financial details to monthly costs associated with the house you want to buy and the name of the financial instit Go to the \"Mortgage Rates\" tab and look up the mortgage rates for your financial institution n Select the fixed rate mortgage that you'd feel most comfortable with if you were actually buy (i) Type (closed or open) (ii) Term (eg. , 6 months, 2 years or 7 years) a)Go to the "Question 1a " tab and explain why you chose each of the above 2 characteristics. Go to the \"Question 1 b to f \" tab. (Use excel formulas, DO NOT just type in your answers) b) Given your financial situation, calculate on the spreadsheet, the maximum monthly mortg [Hint: To do this you must solve for the mortgage payment within the GDSR formula.] [2 Ma c) Using the monthly payments from (b) above, and the interest rate obtained from your assi Base your calculation on a 25 year amortization period with monthly payments made in arrea On the spreadsheet provided, show the N, C/Y, P/Y etc. that you used for this calculation. d) Based on the spreadsheet data and the mortgage calculation above, what is the maximum e) For your very first monthly mortgage payment, how much of it will be interest and how mu f) Using the following table, would you be required to buy mortgage insurance? If not, why no Down Payment as % Premium as % of Property Price of Mortgage 15% - 19.99% 10% - 14.99% 5% - 9.99% 2 1.80% 2.40% 3.15% (This is unrelated to your mortgage in question 1). In the excel spreadsheet tab \"Question 2\" you've been assigned a mortgage with i. ii. iii. iv. v. vi. What are your monthly mortgage payments? What total amount of interest will you pay over the full amortization What would your monthly payments be if your amortization period w What total amount of interest would you pay if your amortization per How much total interest expense would you save if your amortizatio What percentage of your original total interest expense (ii above) w [1/2 Mark each, 3 Marks in total] 3 Read the articles in the Article 1 and Article 2 tabs of thus spreadsheet. Who do you agree with, Finance Minister Bill Morneau or Will Dunning, chief economist for M FINA10025 Topics in Financial Planning Mortgage Assignment ade. The maximum mark is 16. s. Any evidence of plagiarism and your grade for the entire assignment will be ZERO. TO YOUR NAME ATE TABS OF THIS SPREADSHEET me personal financial details to be used for parts b to f of this question. This includes your annual income, down pa he name of the financial institution that will give you a mortgage. s for your financial institution noted above. Note: the posted rates are expressed as monthly compounded ra e with if you were actually buying a home right now. of the above 2 characteristics. [2 Marks] in your answers) , the maximum monthly mortgage payment you can afford based on a GDSR of 32%. in the GDSR formula.] [2 Marks] st rate obtained from your assigned financial institution in (a) above, calculate the maximum mortgage principal yo onthly payments made in arrears (ie at the END of each month). ou used for this calculation. [1 Mark] on above, what is the maximum price you can afford to pay for your new home? [1 Mark] f it will be interest and how much of it will be principal repayment? [2 Marks] gage insurance? If not, why not? If so, how much would it cost? [1 Marks] een assigned a mortgage with a given amortization period. Based on the details provided: payments? you pay over the full amortization period? s be if your amortization period were cut in half ? d you pay if your amortization period were cut in half ? would you save if your amortization period were cut in half? otal interest expense (ii above) would you save if the amortization period were cut in half? adsheet. Dunning, chief economist for Mortgage Professionals Canada? EXPLAIN WHY. [4 Marks] r annual income, down payment, the estimated monthly compounded rates. um mortgage principal you can borrow. Base your calculation on a 25 year amortization period with monthly paym period with monthly payments made in arrears (ie at the END of each month). On the spreadsheet provided, sh preadsheet provided, show the N, C/Y, P/Y etc. that you used for this calculation. BNS BMO CIBC TD RBC HSBC 3.00% 3.30% 3.60% 3.90% 4.20% 5.40% 6.55% 3.11% 3.41% 3.71% 4.01% 4.31% 5.51% 6.66% 3.03% 3.33% 3.63% 3.93% 4.23% 5.43% 6.58% 5.16% 5.79% 7.41% 5.35% 6.00% 7.68% 5.21% 5.85% 7.48% FIXED RATE CLOSED MORTGAGES Term 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 7 Yr 10 Yr 2.99% 3.29% 3.59% 3.89% 4.19% 5.39% 6.54% 3.07% 3.37% 3.67% 3.97% 4.27% 5.47% 6.62% 3.04% 3.34% 3.64% 3.94% 4.24% 5.44% 6.59% FIXED RATE OPEN MORTGAGES Term 6 months 12 months 18 months 5.14% 5.77% 7.39% 5.28% 5.93% 7.58% 5.23% 5.87% 7.51% ALL RATES ABOVE ARE COMPOUNDED MONTHLY ICICI First Ontario Credit Union 3.02% 3.32% 3.62% 3.92% 4.22% 5.42% 6.57% 2.97% 3.27% 3.57% 3.87% 4.17% 5.37% 6.52% 2.98% 3.28% 3.58% 3.88% 4.18% 5.38% 6.53% 3.04% 3.34% 3.64% 3.94% 4.24% 5.44% 6.59% 3.01% 3.31% 3.61% 3.91% 4.21% 5.41% 6.56% 5.19% 5.83% 7.46% 5.11% 5.73% 7.34% 5.13% 5.75% 7.36% 5.23% 5.87% 7.51% 5.18% 5.81% 7.43% ED MONTHLY Momentum Meridian Credit Credit Union Union DUCA Credit Union Did you choose an OPEN or CLOSED mortgage? WHY? What mortgage TERM did you choose? WHY? NOTE: Create formulas in each excel cell to find the appropriate answ Student Monthly property tax, heat, 1/2 of condo fees Other debt service ( monthly) Annual Income NOTE: SAMPLE STUDENT PROVIDED AT BOTTOM 450 527 81,488 SAMPLE STUDENT 750 166 79,000 e appropriate answer (except Column "L". For that, show your TVM entries (ie Available for Down Payment Financial Institution Term Interest Rate Enter your lender's Enter your chosen monthly compounded mortgage term (eg. rate for your chosen 2 yrs, 5 yrs.) term 29,000 Meridan C. U. s -> Max. monthly mortgage payment within GDSR @ 32% 2 63,000 BMO 3 4.39% 1,356.67 TVM entries (ie. I/Y, N etc.. ) Max. Mortgage Affordable Max. Home Price Affordable 25 yr amortization Based on Max (insert answer in mortgage + down cell then show TVM payment) entries (I/Y, PMT etc. below that) 1 1 Down Payment Mortgage 1st Payment Mortgage as a % of Insurance Insurance Max. Required Y Cost Home or N ? Interest Principal Price 1 1 1 246,843.51 309,843.51 903.04 Solve using EXCEL FORMULAS. 453.63 20.3% No DO NOT just type in your answers. - Student 154471 4.00% 18 i) Monthly Payments ii) Total Interest Payments iii) Monthly Payments if 1/2 Amort Period 0.5 0.5 0.5 iv) Total Interest Payments if 1/2 Amort Period 0.5 v) Total Interest Saved vi) % Interest Saved 0.5 0.5 Answer Question 3 in the space below