Loan 1: 30-year fixed mortgage:

Interest Rate: ____________% (Not the % down payment!)

Loan 2: 15-year fixed mortgage:

Interest Rate: ___________%_ (Not the % down payment!) (

Loan 3: 15-year fixed mortgage with points:

Interest Rate: ___________%_ (Not the % down payment!)

II. For each of the three mortgages, determine, after the loan is paid off, how much you will have paid for your home including all costs.

Loan 1: 30-year 5% down payment. Show the calculations. ______________

Loan 2: 15-year 3% down payment. Show the calculations. ______________

Loan 3: 15-year 3% down and points. Show calculations. _____________

I. After the loan is paid off, calculate the part of that total payment that is interest.

Loan 1: 30-year fixed with 5% down payment. Show all calculations. ): ________

Loan 2: 15-year fixed with 3% down payment. Show all calculations. : ________

Loan 3: 15-year fixed mortgage (with points) Show all calculations. : ________

IV. Comparing all four mortgages, address the following questions.

Thoroughly explain your reasoning using numbers and calculations:

What are the advantages of each mortgage? Be specific. Use your calculations and analysis to support your answers.

Loan 1 :

Loan 2:

Loan 3 :

What are the disadvantages of each mortgage? Be specific. Use your calculations and analysis to support your answers.

Loan 1

Loan 2 )

Loan 3

Which mortgage loan seems to make the most sense for you (based on your answers for House Project, Part I)? Provide a well-supported explanation for your answer. This should be at least five complete sentences.