Overview:
In this assignment, you will 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:
1. Choose a piece of real estate (residential, commercial, warehouse, land) using a resource such as realtor.com, zillow.com, etc. Provide the listing sheet or link. 2. 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. 3. 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. 4. Compare and contrast the two financing options. a. Explain any background information and/or further description of loan types selected. 5. Identify the financing option you would choose. a. Provide a justification for your financing option selection.
Requirements:
Numbers 1, 2, 4, 5 should be in a Word document. Number 3 should be an Excel, or another approved spreadsheet. Upload both documents to the link in the course. Professional communication is expected, which includes proper spelling and grammar, and providing source information when using outside resources.
Be sure to read the criteria by which your work will be evaluated before you write and again after you write.