Project 1: Buying a House The purpose of this project is to help you understand purchasing a home. You will make a 10% down payment to avoid escrow costs and finance the balance over 30 years. Payments and compounding will occur monthly. Round all dollar amounts to the nearest cent. Don't just list the numbers, you should also add your own understanding and explanations. Present it as a written project, not just Q\&A. Find a home in Westchester or any state or county you like by visitinghttp://www.realtor.com or https://www.zillow.com or some other online real-estate system. a. Indicate the Address of home b. What is the asking price of home c. What is the mortgage amount (or amount of loan) after 10% down payment. d. Find the current interest rate for your mortgage (from your bank or online). In particular, find the rates for 30-year mortgage. e. If you take a 30-year mortgage, find the monthly payment (must show your work). Then the total payments to repay loan if regular payments are made for the full 30 years (the loan does not include the down payment) ( #of payments times the monthly payment). f. What is the amount of interest paid if the loan goes full term? (Total payments minus the mortgage) g. Amortization Schedule for the 30-year mortgage. Create an amortization schedule excel spread sheet showing the mortgage payments. Attach the schedule to your paper. The amortization schedule must include the following key columns (and calculations): payment number, Mortgage payment, Principle (associated with that payment), Interest (associated with that payment), unpaid balance. Also include a totals row. (Instruction can be found online https:/www. excel-easy.com/examples/loan-amortizationschedule.html or watch youtube video https://www youtube com/watch?v=M9xD3yyLSAI ) h. We all know that interest rate is very high right now. If we use a lower interest rate ( assume rate is 3.6% ), what will be the monthly payment? i. Reflection: Did this project enhance your understanding of annuity? What is your opinion about higher interest rate? Project 1: Buying a House The purpose of this project is to help you understand purchasing a home. You will make a 10% down payment to avoid escrow costs and finance the balance over 30 years. Payments and compounding will occur monthly. Round all dollar amounts to the nearest cent. Don't just list the numbers, you should also add your own understanding and explanations. Present it as a written project, not just Q\&A. Find a home in Westchester or any state or county you like by visitinghttp://www.realtor.com or https://www.zillow.com or some other online real-estate system. a. Indicate the Address of home b. What is the asking price of home c. What is the mortgage amount (or amount of loan) after 10% down payment. d. Find the current interest rate for your mortgage (from your bank or online). In particular, find the rates for 30-year mortgage. e. If you take a 30-year mortgage, find the monthly payment (must show your work). Then the total payments to repay loan if regular payments are made for the full 30 years (the loan does not include the down payment) ( #of payments times the monthly payment). f. What is the amount of interest paid if the loan goes full term? (Total payments minus the mortgage) g. Amortization Schedule for the 30-year mortgage. Create an amortization schedule excel spread sheet showing the mortgage payments. Attach the schedule to your paper. The amortization schedule must include the following key columns (and calculations): payment number, Mortgage payment, Principle (associated with that payment), Interest (associated with that payment), unpaid balance. Also include a totals row. (Instruction can be found online https:/www. excel-easy.com/examples/loan-amortizationschedule.html or watch youtube video https://www youtube com/watch?v=M9xD3yyLSAI ) h. We all know that interest rate is very high right now. If we use a lower interest rate ( assume rate is 3.6% ), what will be the monthly payment? i. Reflection: Did this project enhance your understanding of annuity? What is your opinion about higher interest rate
