Question
please do it in excel and provide me formula You are planning to purchase a house that costs $480,000. You plan to put 20% down
please do it in excel and provide me formula
You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage.
determine whether or not you should save some of your money and put only 10% down on your house. Because you are only putting 10% down, lenders require that you purchase private mortgage insurance (PMI). Assume that PMI is 1% of the mortgage amount. (How does PMI work? For example, on a $100,000 loan, 1% PMI means you are paying and additional $1,000 a year or $83.33 a month)
5. Calculate your total monthly payment (mortgage payment plus PMI).
6. Calculate the total cost of the home purchase. (Down payment plus principal (loan amount) plus interest.)
7. Calculate how much interest and PMI you will pay in total?
8. What are the advantage and disadvantages between 20% down payment vs. 10% down payment and PMI? Which one do you pick? Please explain. (For this question, include a Memo that summarizes your analysis and outcomes in Excel.)
Part II Inputs House Cost Down Payment Loan Amount Interest Rate Annual PMI Interest Rate Monthly Loan Terms (Annual) Loan Term (Monthly) 5) Mortgage Payment PMI Payment Total Payment 6) Total Cost 7) Interest and PMI Paid 8 Memo: Advantages and disadvantages of 20% down payment vs. 10% down payment + PMI payment. Which one do you pick. Please summarizeStep by Step Solution
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