Está en la página 1de 4

Math 1030 Project 1

Name _____Ayla Castano_____

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 ___334,900____.
Assume that you will make a down payment of 20%.
The down payment is ____66,980___.

The amount of the mortgage is __267,920_.

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: ____HSBC Bank U.S.A_____.
Rate for 15-year mortgage: ____2.940%__. Rate for 30-year mortgage ___3.607% .
Name of second lending institution: _____Sebonic financial_______.
Rate for 15-year mortgage: ___2.750%___. Rate for 30-year mortgage__3.387%_.
Assuming that the rates are the only difference between the different lending institutions, find the monthly
payment at the better interest rate for each type of mortgage.
15-year monthly payment: __\$1,818.16___. 30-year monthly payment _\$1,186.24_.
These payments cover only the interest and the principal on the loan. They do not cover the insurance or
taxes.
To organize the information for the amortization of the loan, construct a schedule that keeps track of: (1) the
payment number and/or (2) the month and year (3) the amount of the payment, (4) the amount of interest
paid, (5) the amount of principal paid, and (6) the remaining balance. There are many programs online
available for this including Brett Whissles website: http://bretwhissel.net/cgi-bin/amortize. A Microsoft Excel
worksheet that does is also available online at http://office.microsoft.com/en-us/templates/loanamortization-schedule-TC001019777.aspx?CategoryID=CT062100751033.

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. .

1,818.16

613.98

1,204.18

266,715.82

2. .

1,818.16

611.22

1,206.94

265,508.88

50. .

1,818.16

471.05

1,347.11

204,203.33

90. .

1,818.16

341.89

1,476.27

147,710.53

120. .

1,818.16

236.95

1,581.21

101,813.75

150. .

1,818.16

124.55

1,693.61

52,654.42

180. .

1,818.16

4.16

1,814.00

327,269.49

59,349.49

267,920

Total

-------

\$0.00. .
---------

Use the proper word or phrase to fill in the blanks.

The total principal paid is the same as the ___loan amount__.
The total amount paid is the number of payments times _the monthly payment___.
The total interest paid is the total amount paid minus ___the principal amount___.
Use the proper number to fill in the blanks and cross out the improper word in the
parentheses.
Payment number
__1__ is the first one in which the principal paid is greater than the interest paid.
The total amount of interest is \$___59,349.49____ (more or less) than the mortgage.
The total amount of interest is ____22.152______% (more or less) than the mortgage.
The total amount of interest is ____22.152______% of the mortgage.

30-year mortgage
Payment
Number

Payment
Date

Payment
Amount (\$)

Interest
Paid (\$)

Principal
Paid (\$)

Remaining
Balance (\$)

1. .

1,186.24

756.20

430.04

267,489.96

2. .

1,186.24

754.99

431.25

267,058.71

60. .

1,186.24

678.40

507.84

239,847.39

120. .

1,186.24

584.83

601.41

206,602.31

240. .

1,186.24

342.79

843.45

120,607.17

300. .

1,186.24

187.39

998.85

65,391.85

360. .

1,186.24

3.35

1,182.89

427,049.24

159,129.24

267,920

total

-------

\$0.00. .
---------

Payment number _120_ is the first one in which the principal paid is greater than the interest paid.
The total amount of interest is \$___159,129.24_____ (more or less) than the mortgage.
The total amount of interest is ____59.39____% (more or less) than the mortgage.
The total amount of interest is ___59.39_____% 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 \$__132,652.26__.
The total amount of interest paid with the \$100 monthly extra payment would be \$__26,476.98__
(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 ___16.63___% (more
or less) than the interest paid for the scheduled payments only.
The \$100 monthly extra payment would pay off the mortgage in _3_ years and _9_ months; thats
__45__ months sooner than paying only the scheduled payments.
House Listing