For this project, use the following hypothetical situation:
You have found a new job in Denver, Colorado and would like to purchase a home in that area. Ideally, you would like to find a single-family house with at least three bedrooms and one bathroom that costs between $150,000 and $225,000 and finance it with a 30-year fixed rate mortgage. You can afford a down payment that is 20 percent of the value of the house. Before you purchase a house, you would like to find out what homes are available in your price range, find a mortgage, and determine the amount of your monthly payment. You would also like to see how much of your mortgage payment represents principal and how much represents interest. Use the Yahoo! real estate site (http://homes.yahoo.com/) to help you with the following tasks:
Locate homes in your price range in Denver, Colorado. Find out as much information as you can about the houses, including the real estate listing agent, condition of the house, number of rooms, and the school district.
Find a mortgage for 80 percent of the list price of the home.
After selecting a mortgage, calculate your closing costs.
Calculate the monthly payment for the mortgage you select.
Calculate how much of your monthly mortgage payment represents principal and how much represents interest, assuming you do not plan to make any extra payments on the mortgage.
Sample Solution
