Mortgage Amount:	$1,395,000.00
Interest Rate:	5.00%

Scenario 1: Use the following data- (4 marks)

1. Ten percent down-payment is made, and the remaining amount must be borrowed.
2. the rate of interest is 5%
3. payment frequency is twelve times a year or monthly.
4. the term of the mortgage is 5 years (term of the mortgage you will have to renew several times over the 25-year amortization period)
5. the amortization period is 25 years (total # of years to pay off the home)

Calculate

1. your monthly mortgage payments,
2. the amount of interest paid for the term.
3. the amount of interest for the amortization period
4. the total cost of your home at the end of the amortization period

Scenario 2: Use the following data- (5 marks)

1. Twenty percent down-payment is made, and the remaining amount must be borrowed.
2. the rate of interest is 5%
3. payment frequency is twelve times a year or monthly.
4. the term of the mortgage is 5 years.
5. the amortization period is 25 years.

Calculate

1. your monthly mortgage payments,
2. the amount of interest paid for the term.
3. the amount of interest for the amortization period
4. the total cost of your home at the end of the amortization period
5. any savings made due to the down payment.

Scenario 3: Use the following data- (5 marks)

1. Twenty percent down a down-payment is made, and the remaining amount must be borrowed.
2. the rate of interest is 5%
3. payment frequency is weekly.
4. the term of the mortgage is 5 years.
5. the amortization period is 25 years.

Calculate

1. your monthly mortgage payments,
2. the amount of interest paid for the term.
3. the amount of interest for the amortization period
4. the total cost of your home at the end of the amortization period
5. any savings made due to the down payment and accelerated weekly payment.

Scenario four

Choose one of the mortgage terms (of your own choosing) and redo your calculations:

i.e., change one of the following: (5 marks)

1. change the % of down-payment made and recalculate the remaining amount that must be borrowed (cannot be more than 40% down payment!)
2. the rate of interest is _% (cannot be unreasonable go to the web and see what current mortgage rates are document your website where you got your information)
3. payment frequency is (choose weekly, bi-monthly, or monthly)
4. the term of the mortgage is _ years.
5. the amortization period is _____ years.

After recording your findings in an Excel spreadsheet and comparing all four scenarios discuss what you are seeing and your conclusions

\begin{tabular}{l|c|c|c|c} Description: & Scenario 1 & Scenario 2 & Scenario 3 & Scenario 4 \\ \hline & \begin{tabular}{c} 10\%, 5 term, pay \\ monthly, 25 \end{tabular} & \begin{tabular}{c} 20%,5 term, pay \\ monthly, 25 \end{tabular} & \begin{tabular}{c} 20%,5 term, pay \\ weekly, 25 \end{tabular} & \\ Terms of Mortgage & Amortization period & Amortization period & Amortization period & your terms \\ \hline \end{tabular}