Where is your dream home located? How much will it cost to buy it? Do some resea
ID: 362775 • Letter: W
Question
Where is your dream home located? How much will it cost to buy it? Do some research and find your dream home. Provide a link to your dream home.
Research lending rates and pick a bank you will approach for your mortgage. Choose the repayment period for your mortgage, the amount of down-payment you will make, etc.
Use the loan amortization schedule Excel file below to generate the loan amortization schedule for your mortgage. Note down the total payment you will make over the lifetime of your mortgage and the amount of interest you will pay your bank.
Create two scenarios to pay off your loan early. For one scenario, you may want to add an additional affordable amount to your monthly payments (for instance, if your monthly payment is $889, you might add an extra $11 each month and make $900 monthly payment instead). For the second scenario, you might make periodic extra payments when you get a bonus, for instance. In each case, note down the reduction in interest cost from paying off early, as well the number of months by which you cut down your mortgage.
Write up a brief report summarizing your findings.
Explanation / Answer
Where is your dream home located? How much will it cost to buy it? Do some research and find your dream home. Provide a link to your dream home.
My dream home is located in New York City, 265 East Houston Street, #4A., at the southwest corner Of Stanton Street, Lower East
side. The average price of a high rise home in New York is around 2 Million $.
Details:
($1,429 per ft2)2 beds, 2 bathsApprox. 1,400 ft2
Source : City Reality (website)
Research lending rates and pick a bank you will approach for your mortgage. Choose the repayment period for your mortgage, the amount of down-payment you will make, etc.
New York Mortgage Rates (State Average across All banks under ideal credit or FICO scores of 700 and above)
I would Choose Chase as my bank of Choice to finance the purchase of my dream home.
The repayment period of my mortgage would be 10 years.
Use the loan amortization schedule Excel file below to generate the loan amortization schedule for your mortgage. Note down the total payment you will make over the lifetime of your mortgage and the amount of interest you will pay your bank.
Create two scenarios to pay off your loan early. For one scenario, you may want to add an additional affordable amount to your monthly payments (for instance, if your monthly payment is $889, you might add an extra $11 each month and make $900 monthly payment instead). For the second scenario, you might make periodic extra payments when you get a bonus, for instance. In each case, note down the reduction in interest cost from paying off early, as well the number of months by which you cut down your mortgage.Write up a brief report summarizing your findings.
Answer :
Here's the Mortgage Amortisation with Pay down without any increase in payments
(the above is interest saved if the amount paid monthly was increased to 25,000 $
(The Below is the interest saved if there was a paydown of 100,000 $ annually)
Product Rate Change 30 Year Fixed 3.80% -0.09 15 Year Fixed 3.17% -0.01 5/1 Year ARM 3.59% +0.03 1 Year ARM 2.65% 0.00Related Questions
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