Mortgage Project 5 Parts:

Part 1: Select a piece of real estate (residential, commercial, warehouse, land) You will need to include a listing sheet/link. After you choose a property, determine all the extra monthly payments the buyer will have associated with the particular property. These are items like taxes, insurance, property fees, access fees, etc You will need to take these into consideration when designing the financing options. Part 2: Determine a down payment. (a standard down payment is 20%, however you may offer justification for any amount/percent you choose).

Part 3: There are many financing options available: fixed rate, variable rate, loans with points, balloon loans, just to name a few. Choose two different options and not just two variations of the same type. You should provide a detailed description of the options chosen. For example, you could choose a 30 year fixed mortgage and a 15 year ARM.

Part 4: Use Excel to create a complete amortization schedule for the life of both financing options. Here you lay out the details of the two financing options you selected. Aside from presenting the details of the loans, provide information about the impact of the two options on the buyer. For example, what are the short and long term difference? How will increases in the cost of living effect the buyer? What will happen if the interest rate suddenly increases? Dont forget, you want your money back plus the interest so think through what crazy things could happen in 15, 20, or 30 years. You must create the spreadsheet yourself, the equations that you enter in the cells of the spreadsheet can only utilize basic arithmetic and exponent operations. Part 5: Write an analysis that compares and contrasts the two financing options in detail. Be specific. Include justifications for selecting an option. You should discuss in detail how each option will impact the buyer in the short and long term. I would like to see at least a half page of analysis. This part is worth 15 points and I will grade based on the effort you put into it.

Requirements:

Word document that has all five parts written out

Excel spreadsheet that has the calculations for your two different mortgage options

A real estate listing sheet