- Important Housing And Lending Information The Interest Rates For A 15 Year Fixed Mortgage Is3 5 The Interest Rate Fo 1 (167.32 KiB) Viewed 12 times
FAMILY INFORMATION Ross Geller: Age 33 Rachel Geller: Age 31Children: Kathy Age 6 Savings $125,000 Credit Scores: Ross 800 /Rachel 740 Debt payments per month: $600 (student loan payments of$400 and $200 per month of credit card debt payments) Gross AnnualIncome: $145,000
HOUSE INFORMATION
IMPORTANT HOUSING AND LENDING INFORMATION • The interest rates for a 15-year fixed mortgage is3.5%. The interest rate for a 30-year fixed mortgage is 4.5%. The cost for PMI is $125 per month (if used). • Annual property taxes are 1.5% of the purchase price for the home. Remember this is paid monthly and included in PITI. Homeowners insurance will cost $115 per month for homes purchased under $350,000 and $150 for homes purchased over this the price. Remember this is paid monthly and included in PITI. • Please use a 3% as the MINIMUM down payment. • Closing costs are $4,000. The costs CANNOT be rolled into the loan. Make sure to look at their housing ratios, talk about the pros and cons of purchasing a home. What is escrow? What are closing costs? Discuss how much should they keep in savings (hint liquidity ratios). Try your best to include graphics regarding the house payment. Great tools can be found at https://www.dinkytown.net/. I know silly name BUT great tools! YOU WILL SUBMIT AN EXCEL SPREADSHEET AND A WORD DOCUMENT. REQUIREMENTS 1. Which house do you recommend for the Gellers and why? Please provide a screen shot of the house from the website. Please include the address. Is there anything that the Gellars didn't get with this house? 2. Decide how much money should be used as a down payment. Explain why this amount was selected. 3. Provide a calculation for the PITI for both a 15 year and a 30 years mortgage. Which loan cost the most interest over the life of the respective loans? 4. Calculate their HR 1 and HR 2 ratios to make sure they can afford the loan. 5. Use tables to compare the data and use bullet points to answer the questions. Include 2-3 graphs from dinkytown.net 6. Include some graphics from dinkytown.net (use screenshots). 6. Save your documents in word and excel as firstname_lastname_eco1307_HW5_SPRING 2022