INTEREST RATE: 2.232%

ASKING PRICE OF HOUSE: 100,000$

from project 3: I will be paying a total of $ 77,515.78 pus the total interest of $ 8,167.18 for 120 months. The monthly interest is 0.00186%.

Preview: You will use the same home and interest rate that you used for project 3. If you did not complete project 3 you can still complete project 4 by finding a current home for sale in the Metropolitan Detroit area that you would like to buy. (You can use Websites like Realtor, Zillow, or the MLS or even the local newspaper). You can be realistic or make an aspirational choice, the only requirement is that the home has a listing price of over $19,999. Record the asking price of the home and record where you found the house for sale in the citations. If it is on the MLS system, then record the MLS number. Typically, when buying a house there is some negotiation involved. There are also fees to make sure the property is actually owned by the seller, fees to the company issuing the mortgage, fees to an appraiser, fees to the county and so on. For the purpose of this project we will assume that the seller has agreed to pick up the fees and that you agree to pay the asking price. Assume that you will finance 70% of the asking price of the home. Visit the Bank Of HFC Interest Rate Claim Site (Also known as the SignUpGenius for project #3) to select your fixed interest rate with zero points and fees. I will only grade your project if you have claimed an interest rate. Use your valid email address so that you can receive the confirmation email notifying you of your choice. This time you decide that you have decided that you would like to pay off the loan faster by paying an extra $350 each month. What to do: 1. Using an initial principal of 70% of the purchase price, the interest rate you selected in the sign-up for project 3, and as many payments as necessary to make your balance $0 create an amortization table for the loan (Just like in project three you will need to have questions 1 and 2 answered before creating the chart). Label your columns month, payment (keep in mind you payment should be an additional $350 each month), applied to interest, applied to principal, and remaining principal. You must use a spreadsheet and not a website. (Watch the video to get all of the tips and tricks to creating this excel document) 2. Answer the following five questions. You may word process your answers or print neatly. The document you submit must be in PDF format, however. Most word processors allow you to save a document in PDF format. Printed answers can be scanned as a PDF using one of number of different apps. Directions to using one of them are included in the Week 1: Videos in HFC Online. 1. In 2-3 sentences state the details of the home you have chosen. Include the address, asking price, and the initial principal. Provide the work for finding the initial principal of 70% of the asking price. 2. Calculate the monthly payment using the formula outlined in section 4.2, remember this time you have decided to pay an additional $350 to pay off the loan faster. Show your work. 3. Using your spread sheet determine the total amount paid for the loan and the amount of interest you would pay for the loan by paying $350 extra each month. 4. Using your spread sheet determine how many payments you would need to make in order for your balance to be $0. How many fewer payments would this be compared to the number of payments in project 3. 5. Compare your answers in project 3 and project 4 for question 3. How much do you save by paying $350 more each month? Explain in 1-2 sentences how you arrived at your answer. (If you didn't complete Project #3 you will need to calculate the need information from the previous project to be able to compare.) Preview: You will use the same home and interest rate that you used for project 3. If you did not complete project 3 you can still complete project 4 by finding a current home for sale in the Metropolitan Detroit area that you would like to buy. (You can use Websites like Realtor, Zillow, or the MLS or even the local newspaper). You can be realistic or make an aspirational choice, the only requirement is that the home has a listing price of over $19,999. Record the asking price of the home and record where you found the house for sale in the citations. If it is on the MLS system, then record the MLS number. Typically, when buying a house there is some negotiation involved. There are also fees to make sure the property is actually owned by the seller, fees to the company issuing the mortgage, fees to an appraiser, fees to the county and so on. For the purpose of this project we will assume that the seller has agreed to pick up the fees and that you agree to pay the asking price. Assume that you will finance 70% of the asking price of the home. Visit the Bank Of HFC Interest Rate Claim Site (Also known as the SignUpGenius for project #3) to select your fixed interest rate with zero points and fees. I will only grade your project if you have claimed an interest rate. Use your valid email address so that you can receive the confirmation email notifying you of your choice. This time you decide that you have decided that you would like to pay off the loan faster by paying an extra $350 each month. What to do: 1. Using an initial principal of 70% of the purchase price, the interest rate you selected in the sign-up for project 3, and as many payments as necessary to make your balance $0 create an amortization table for the loan (Just like in project three you will need to have questions 1 and 2 answered before creating the chart). Label your columns month, payment (keep in mind you payment should be an additional $350 each month), applied to interest, applied to principal, and remaining principal. You must use a spreadsheet and not a website. (Watch the video to get all of the tips and tricks to creating this excel document) 2. Answer the following five questions. You may word process your answers or print neatly. The document you submit must be in PDF format, however. Most word processors allow you to save a document in PDF format. Printed answers can be scanned as a PDF using one of number of different apps. Directions to using one of them are included in the Week 1: Videos in HFC Online. 1. In 2-3 sentences state the details of the home you have chosen. Include the address, asking price, and the initial principal. Provide the work for finding the initial principal of 70% of the asking price. 2. Calculate the monthly payment using the formula outlined in section 4.2, remember this time you have decided to pay an additional $350 to pay off the loan faster. Show your work. 3. Using your spread sheet determine the total amount paid for the loan and the amount of interest you would pay for the loan by paying $350 extra each month. 4. Using your spread sheet determine how many payments you would need to make in order for your balance to be $0. How many fewer payments would this be compared to the number of payments in project 3. 5. Compare your answers in project 3 and project 4 for question 3. How much do you save by paying $350 more each month? Explain in 1-2 sentences how you arrived at your answer. (If you didn't complete Project #3 you will need to calculate the need information from the previous project to be able to compare.)