Question

Scenario: You want to buy a house in Ypsilanti's up and coming Normal Park neighborhood. You find a cute home that is going for $210.500. You talk to your bank and with 10%down, you can talke out a 30 year mortgageS.3%Jinterest Home purchase questions: How much will the down payment on the house be? 2. How much will you need to finance for the home loan? 3. How much will your monthly payment be (round to 2 decimal places)? 4. How much total interest will be paid on the home by the end of the 30 years? 5. Create an amortization schedule for all360 months of the home loan. 6. How much of the first payment will be paid to interest? 7 How much of the last payment will be paid to interest? 8. How much of the first payment will be paid to the principal? 9 How much of the last payment will be paid to the principal? 10. As you make payments cach month, what happens to the amount of your monthly payment that goes to the principal? Does it increase or decrease? Why? 11. After living in this house for 10 years, you decide to move to Alaska to live your dream of being a wildlife photographer. How much money do you still owe on the home? 12. If you sell the house for $315,000 and pay off the loan, how much will you have to use to buy a home in Alaska? 13. Did you ultimately lose money on the house or make a profit? Calculate the total amount that you paid over the 10 years (of monthly payments) plus the down payment plus the payoff amount (the amount still owed after 10 years). Compare this to the amount that you sold the house for? Which is more? How much more? 14. Write at least one paragraph discussing and analyzing the pros and cons of this scenario. Are there other expenses involved in owning a home besides the amount paid for the house? What is your financial advice for a person who wants to buy a home? To answer these questions, set up a table in Excel such as the following: Payment Number Amount Paid to Interest Amount Paid to Principal New Balance 2

Answer 1

Since the question has more than 4 parts, so following HOMEWORKLIB RULES only first four parts are solved and additionally fifth part i.e. amortized schedule is also prepared for your convenience. Please give positive rating.

Amortization Schedule