Mortgages Calculations

  

Unit 8: Instructor Graded Assignment
Mortgages
In
this and future Instructor Graded Assignments you will be asked to use the
answers you found in the Unit 1 Assignment.
Note:
For these questions you need to cite a reliable source for information, which
means you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers. If you
do use those sites the instructor may award 0 points for your response.
The
Assignment problems must have the work shown at all times. The steps for
solving the problems must be explained. Failure to do so could result in your
submission being given a 0.  If you have any
questions about how much work to show, please contact your instructor.
Assignments
must be submitted as a Microsoft Word® document and uploaded to the Dropbox for
Unit 8. Please type all answers directly in this Assignment below the question
it applies to.
 
All Assignments are due by Tuesday at 11:59 PM ET of the assigned Unit.
Note:
All interest rates are to be assumed to be yearly
interest rates.
For this
assignment you will need the prime interest rate, as posted in the Wall Street
Journal®.
Use the internet to search for the current
prime interest rate.
· 
List the current prime interest
rate:_______________
Question 1
(15
points)
1.
Using the internet, research and find a house listing that you would not mind
living in. Any house will work, but it must be selling for more than $10,000.
  a) Post a link to your house
listing. You can also cut and paste a .jpeg file of your listing.
b) You decide to buy
this house. Assuming the bank can loan you a 30-year mortgage at the yearly interest
rate of Current Prime Rate + 3%, how much are your monthly payments (show all
calcuations?)
c) If you were to
borrow the money instead for 15 years (at the same interest rate as in part b),
how much are your mothly payments?
Question 2
 (5 points)
2.
Using the house listing you found in Question 2, as well as your calculated
monthly payments in Question 2, how much do you pay in interest over the life
of the 30-year loan?
Question 3
(10
points)
3.
You find a great deal for your house! The bank agrees to give you a 5 year loan
where you only pay $100 a month, and at 0% interest. What can go wrong?
However, when 5 years pass you realize you agreed to a balloon mortgage, and
all the rest of that loan is due right now. How much do you need to pay for
your final (60th) payment? Explain how you got your answer and your reasoning
behind it.
Essay
(15
points)
4.
Mortgages come in many different types. There are fixed rate mortgages, ARM
mortgages, and balloon mortgages to name a few.
Research
fixed rate, ARM mortgages and balloon mortgages, then write an essay comparing
them. What are some of the advantages and disadvantages of each? When might you
find one type of mortgage loan beneficial over the other two?
Requirements for essay
· 
Write
your essay in this document – do not save it in a separate file.
· 
You must
clearly state your position with well-structured paragraphs using proper
grammar, spelling, and sentence structure.
· 
This is
not an “opinion” question – you must offer evidence to support your position,
using properly-cited sources
· 
Your
answer must be between ¾-1 page in length.
· 
You must
cite and reference at least one source (book, website, periodical) using APA
format.
· 
Do not
use unreliable sources such as Wikipedia, and Yahoo! Answers.

Don't use plagiarized sources. Get Your Custom Essay on
Mortgages Calculations
Just from $13/Page
Order Essay
  
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more