In this part of the project, you will be purchasing the home you chose in the Budget Project. You will need to obtain a loan from a financial institution since you cannot pay cash for your home. You will be researching three different loan scenarios and determining which loan option best fits your situation and needs.Purchase price of the home you chose from the Budget Project: ________$431,873______Part 1: Financing your homeLoan Scenario 1: In this scenario, your financial institution is offering you a 30-year fixed mortgage with a 20% down payment at a 3.43% fixed rate.Determine the following:Calculate the down payment for this loan.How much will you need to finance from the bank for this loan?What is your monthly payment? Use technology or the monthly payment formula in your text to get the monthly payment for this loan.What is the total cost of the loan over 30 years? How much of this cost is interest?What is the total you will expect to pay at closing for this loan option? Closing costs must be paid before a bank will finance your loan. These costs include a fee to close, the down payment, and first month’s mortgage payment. Assume the fee to close a loan is $2700. What are the advantages of this loan? What are the disadvantages?

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Answered: Calculate the down payment for this…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter9: Obtaining Affordable Housing

Section: Chapter Questions

Problem 3FPC

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Part 1: Financing your home

Loan Scenario 1: In this scenario, your financial institution is offering you a 30-year fixed mortgage with a 20% down payment at a 3.43% fixed rate.

Determine the following:

Calculate the down payment for this loan.
How much will you need to finance from the bank for this loan?
What is your monthly payment? Use technology or the monthly payment formula in your text to get the monthly payment for this loan.
What is the total cost of the loan over 30 years? How much of this cost is interest?
What is the total you will expect to pay at closing for this loan option? Closing costs must be paid before a bank will finance your loan. These costs include a fee to close, the down payment, and first month’s mortgage payment. Assume the fee to close a loan is $2700.
What are the advantages of this loan? What are the disadvantages?

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