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Mortgage Loan Essay

263 words - 2 pages

1. Find a description, asking price, and real estate taxes of a house for sale,
and decide on a purchase price you would be willing to pay (assuming you
have the means). Find a current market interest rate for a 30-year fixed-rate
mortgage having a down payment of 20 percent of the purchase price.

2. Compute the down payment, amount financed, and the monthly mortgage
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4. Suppose that in order to qualify for the loan, the total monthly amount paid
cannot exceed 30 percent of monthly income. What is the minimum
monthly income needed to qualify for the loan? What is the minimum
annual income needed? (Note: This is a simplified minimum income
requirement calculation, for the purposes of this project, as it does not take
into account other costs such as insurance or other loans or assets currently
held.)

5. Construct an amortization table (using spreadsheet software or online
resources.

6. Assume that the first payment is made in January of the current year. Find
the month and year of the last payment. Find the date of the first month
when the amount applied to the principal exceeds the amount of interest
paid. How many of the 360 payments have been made at this point?

7. Assuming that the mortgage is held for the full 30 years, compute the total
principal paid and the total interest paid.

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