Compare and contrast financing options. When financing a home, it is important to understand your options. Each option comes with pros and cons, some of them are short-term and some of them are long-term. The purpose of this assignment is to demonstrate your ability to understand a variety of financing options and develop amortization schedules and then use a series of subjective and objective criteria to analyze the short-term and long-term pros and cons to justify a decision.
Instructions:
- Choose a piece of residential real estate using realtor.com. Provide the listing link.
HERE IS THE LINK:
https://www.realtor.com/realestateandhomes-detail/34-Maplewood-Ave_Dobbs-Ferry_NY_10522_M49493-98119 - Determine a down payment percentage. A standard down payment is 20%. You may choose another percentage.
a. Provide a justification for the down payment percentage you choose. - Research two different financing options. For example, 15-year. fixed, 30-year. Fixed, 5-1 ARM, VA loan, etc.
a. Use Excel, or another approved spreadsheet, and create a complete amortization schedule for the life of both financing options. - Compare and contrast the two financing options.
a. Explain any background information and/or further description of loan types selected. - Identify the financing option you would choose.
a. Provide a justification for your financing option selection.
Sample Solution
