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Math 1030
Name Emiree Lang, Kenneth Heath
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

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Math 1030
Name Emiree Lang, Kenneth Heath
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 ___$260,000_________. Assume that you will make a down payment of 20%. The down payment is _________$52,000___. The amount of the mortgage is ____________. 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: _America First__________________________. Rate for 15-year mortgage: ___3.875%_________. Rate for 30-year mortgage ___________4.5%_. Name of second lending institution: _Wells Fargo_. Rate for 15-year mortgage: ____4.125%______. Rate for 30-year mortgage ______4.5%______. 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: _______$1525.55_____. 30-year monthly payment ____$1053.91________. These payments cover only the interest and the principal on the loan. They do not cover the insurance or taxes. To organize the information for the amortization of the loan, construct a schedule that keeps track of: (1) the payment number and/or (2) the month and year (3) the amount of the payment, (4) the amount of interest paid, (5) the amount of principal paid, and (6) the remaining balance. .
It’s not necessary to s
how all of the payments in the tables below. Only fill in the payments in the following schedules. Answer the questions after each table. 30-year mortgage Payment Number Payment Date Payment Amount ($) Interest Paid ($) Principal Paid ($) Remaining Balance ($) 1. . 4/1 $1525.55 $780.00 $273.91 $207,726.09 2. . 5/1 $1525.55 $778.97 $274.93 $207,451.16 50. . 6/1 $1525.55 $724.86 $329.04 $192.967.53 90. . 9/1 $1525.55 $671.72 $382.19 $178.742 120. . 3/1 $1525.55 $626.30 $427.60 $166,586.02 150. . 9/1 $1525.55 $575.49 $478.42 $152.984.51 180. . 3/1 $1525.55 $512.63 $535.27 $0.00 total - - - - - - - - - - - - - - - - Use the proper word or phrase to fill in the blanks. The total amount paid is the number of payments times - the value of the monthly payment_. The total interest paid is the total amount paid minus - The Principle Balance. Use the proper number to fill in the blanks and cross out the improper word in the parentheses. Payment number 175___ is the first one in which the principal paid is greater than the interest paid. The total amount of interest is $36,594.04__less (more or less) than the mortgage. The total amount of interest is 82.24%_% (more or less) than the mortgage. The total amount of interest is 17.59% of the mortgage.
15-year mortgage Payment Number Payment Date Payment Amount ($) Interest Paid ($) Principal Paid ($) Remaining Balance ($) 1. . 4/1/18 $1525.55 $671.67 $853.88 $207,146.12 2. . 5/1/18 $1525.55 $668.91 $856.64 $206,289.48 60. . 3/1/2023 $1525.55 $492.77 $1,032.87 $151,567.30 120. . 3/1/2028 $1525.55 $272.36 $1,253.19 $83,091.10 240. . 300. . 360. . $0.00 .
total - - - - - - - - - - - - - - - - Payment number __1 is the first one in which the principal paid is greater than the interest paid. The total amount of interest is $141,400.24 less_ (more or less) than the mortgage. The total amount of interest is 32.02_% less (more or less) than the mortgage. The total amount of interest is 32.02 % of the mortgage. Consider the 30-year mortgage again and suppose you paid an additional $100 a month towards the principal [If you are making extra payments towards the principal, include it in the monthly payment and leave the number of payments box blank.] The total amount of interest paid with the $100 monthly extra payment would be $139,407.59__________. The total amount of interest paid with the $100 monthly extra payment would be $_199,265more (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 _96% more (more or less) than the interest paid for the scheduled payments only. The $100 monthly extra payment would pay off the mortgage in 25____ years and __1__
months; that’s ____
37__ months sooner than paying only the scheduled payments.
Summarize what you have done and learned on this project in a well written and typed paragraph of at least 100 words (half page). Because this is a math project,
you must compute and compare numbers,
both absolute and relative values.
Statements such as “a lot more” and “a lot less” do not have meaning in a Quantitative Reasoning class.
Make the necessary computations and compare (1) the 15-year mortgage payment to the 30-year mortgage payment (2) the 15-year mortgage interest to the 30-year mortgage interest (3) the 15-year mortgage to the 30-year mortgage with an extra payment
Also, keep in mind that the numbers don’t explain everything.
Comment on other factors that must be considered with the numbers when making a mortgage. Summary When comparing a 15 year mortgage to a 30 year mortgage I found that I would save $471.64 monthly if I chose a 30 year mortgage. However, when comparing the total amount paid of both loans I found that the 15 year loan saved me the most money. The 30 year loan would cost a total of $379,405.96 including principle amount and total interest. The 15 year loan would be a total of $274,599.76 with principle amount and total interest. Id end up spending a total of $104, 806.20 less with a 15 year loan. When comparing interest rates for both loans I found a 3.875% interest rate for a 15 year loan and a 4.5% interest rate for a 30 year loan. The 15 year loan interest rate is about 0.625% less than the 30 year loan. This means the total amount of interest paid on the 15 year loan would be $66,599.76 and the total interest paid for a 30 year loan would be $ 171,405.96. I would pay $ 104,801.20 more in total interest if I went with the 30 year loan. By increasing the monthly payment of the 30 year loan by $100.00 monthly I was able to get the number payment would still be $199.265 more than the total amount of interest paid on the 15 year loan.

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