1.) Find a house you would love to buy. I recommend looking through: https://www.har.com/
2.) Determine how much the monthly principal and interest payment (loan payment) on your house would be if you financed it:
for 30 years @ 3.5% interest compounded monthly
for 15 years @ 2% interest compounded monthly
for 30 years with 15% down, @ 3.5% interest compounded monthly
for 15 years with 15% down, @ 2% interest compounded monthly
3.) How much would you pay for the home over the length of the loan under each scenario (a-d above)? How much of this is interest?
4.) A mortgage payment is made up of the principal and interest payment from your loan (loan payment) as well as taxes and insurance payments. If the amount for taxes and insurance is 8% of the value of your home per year, how much would your mortgage payment be under each of the four scenarios?
5.) Which option do you feel is best? Why?
6.) Present your findings in the form of a PowerPoint presentation to the class on March 28, 2022. By the end of the day, attach your PowerPoint to this assignment link for grading.
