Financial Literacy Introduction to Credit

Assignment Directions:

Using the mortgage calculator found at the website: http://www. bankrate. com/brm/mortgage-calculator. asp . Input the information found in the following paragraph.

A realtor took you to look at three houses this morning. Before you left her office you told her you had $25,000 as a down payment to buy your new home. The three houses she showed you were listed as follows:

1295 Rock and Roll Island; Purchase Price $210,000 Real Estate Taxes: $3450 per year

236 Rap Ready Way; Purchase Price $300,000; Real Estate Taxes: $5500 per year

632 Metal Mile; Purchase Price $145,000; Real Estate Taxes: $2380 per year

After some thought, you decide to purchase the home that is not the most expensive or least expensive.

You agree to put down the $25,000 and after speaking with a mortgage consultant agree to a 30 year mortgage at 6.25%.

Assignment Guidelines:

Answer the following questions for all 3 houses. Be sure to explain how you arrived at each answer.

What is your monthly mortgage payment?
What are your real estate taxes for this home?
What percentage of the purchase price is your down payment?

Submission Requirements:

Submit set of 3 responses for each of the 3 listed houses

When submitting written assignments please remember to:

Submit the assignment question(s) and your responses.
Proofread for spelling, grammar, and punctuation.
Remember complete sentence structure.
Paragraphs need to have minimum of six sentences.