Professional Documents
Culture Documents
Project 1
Name __Primrose Werner-Scalf__
Buying a House
Select a house from a real estate booklet, newspaper, or website. Find something reasonable
between $100,000 and $350,000. In reality, a trained financial professional can help you
determine what is reasonable for your financial situation. Take a screen shot of the listing for
your chosen house and attach it to this project. Assume that you will pay the asking price for
your house.
The listed selling price is $320,000_.
Assume that you will make a down payment of 20%.
The down payment is __64,000___.
Ask at least two lending institutions for the interest rate for both a 15-year and a 30-year fixed
rate mortgage with no points or other variations on the interest rate for the loan.
Name of first lending institution: _Wells Fargo
Rate for 15-year mortgage: _3.00%_____.
Its not necessary to show all of the payments in the tables below. Only fill in the payments in
the following schedules. Answer the questions after each table.
15-year mortgage
Payment
Number
Payment
Date
Payment
Amount ($)
Interest
Paid ($)
Principal
Paid ($)
Remaining
Balance ($)
1. . 10/19/16
1752.54
613.33
1,139.21
$254,860.79
2. . 11/19/16
1749.80
607.87
1,141.94
$253,718.86
50. . 11/19/20
1749.47
468.54
1,280.93
195,564.36
90. . 3/19/24
1749.16
339.56
1,406.23
141,730.46
120. . 419/26
1748.91
234.40
1,514.51
$97,835.10
150. . 3/19/29
1748.64
121.40
1,627.24
$50,672.67
180. . 9/19/31
1748.35
0.00
1,748.35
314,846.50
58,846.50
256,000
total
-------
$0.00. .
---------
23 % of the mortgage.
30-year mortgage
Payment
Number
Payment
Date
Payment
Amount ($)
Interest
Paid ($)
Principal
Paid ($)
Remaining
Balance ($)
1. . 10/19/16
$1,149.55
$746.67
$402.89
$255,597.11
2. . 11/19/16
$1,148.38
$744.31
$404.06
$255,193.05
60. . 9/19/21
$1,148.16
$669.74
$478.42
$229,624.51
120. . 9/19/26
$1,147.89
$578.12
$569.77
$198,212.80
240. . 9/19/36
$1,147.20
$339.06
$808.13
$116,250.63
300. . 9/19/41
$1,146.75
$184.31
$962.44
$63,190.99
360. . 9/19/46
$1,146.21
$0.00
$1,146.21
$413,094.09
$157,094.09
$256,000
total
-------
$0.00. .
---------
Payment number _123_ is the first one in which the principal paid is greater than the interest paid.
The total amount of interest is $__98,905.91____ (more or less) than the mortgage.
The total amount of interest is ___38.64______% (more or less) than the mortgage.
The total amount of interest is ___61.36______% of the mortgage.
Suppose you paid an additional $100 a month towards the principal:
The total amount of interest paid with the $100 monthly extra payment would be
$_133,907.09_.
The total amount of interest paid with the $100 monthly extra payment would be
approximately $_23,187____ (more or less) than the interest paid for the scheduled
payments only.
The total amount of interest paid with the $100 monthly extra payment would be __14.76__
% (more or less) than the interest paid for the scheduled payments only.
The $100 monthly extra payment would pay off the mortgage in 26__ years and __1_
month; thats _47____ months sooner than paying only the scheduled payments.