MATH 1050,COLLEGE ALGEBRA,TERM PROJECT PART 3. GROUP 3. homeloanarizona.net. Issac Smith is going to school to become a video game artist. He helped with compilation of information in a timely manner he also provided the final conclusion paragraph.
Issac Smith is going to school to become a video game artist. He helped with compilation of information in a timely manner he also provided the final conclusion paragraph.
The mortgage payment for a 15yr is $1172.91.The pros of a 15 year mortgage are that you own your home sooner, and you have a smaller interest rate so more of your monthly payment is going towards your principal. The cons are that you have to pay more money per month.
Summary of results: Interest rate effects the total payment amount because depending on how long interest is building up, the higher the total amount becomes. The longer the period of time for the loan is, the more it will cost in the end; interest adds up quickly. If you have a lot of monthly payments due each month, a 30 year loan, with lower monthly payments would be a better option. If you are able to afford the monthly payments of a 15 year loan and can still pay your monthly expenses, that would be the best option because you are paying a significantly lower total amount.
Conclusions: Given the information I have provided about the 30 and 15 year loan options, I would much rather do a 15 year loan one. I would only be paying about $860 more per month, if I went with the 15 year loan option over the 30 year one, and I could pay the loan off in half the time and pay about $197,511.80 less for the total amount. That is a huge amount that could go towards many other useful expenses. However, if it was the case that I had many monthly expenses to pay for, the 30 year loan option would be more convenient because the monthly amount would not be as high so the extra money could go towards those needs.
Insights: I think this assignment helped me out in more ways than one. I am actually planning on buying a house with my boyfriend very soon and using all this information I learned can really help me out so we don’t end up in trouble. I think anyone, at some point in their life, will end up buying a home, so this can help ensure that the decisions they make will be the right ones. We learned this in class because not only does it have to do with math, it will help out our future in buying a home. I am very appreciative of this project.
The total amount that would be paid for a 30 year loan, including the down payment, is $749,336.67 with a total interest amount of $299,435.67.
For a 15 year loan, the total amount is $551,824.87 with a total interest amount of $101,924.8.
The payments each month for a 30 year loan would be about $1,962.33. The payments each month for a 15 year loan would be about $2,820.64.Mckayla Newman
High startup cost
If you do decide to move, selling your house can take a long time. Sometimes you can even lose money on it.
Higher monthly payments.
As a group, we decided that learning about the logistics of purchasing a home will have a positive effect on our future. Growing up many of us believed that math was pointless and we would never utilize it in our lives; however it is assignments like this one that helps is to recognize that this is not the case. We are all appreciative of this project because these techniques can be applied when purchasing a home and therefore be used for the rest of our lives. The group is in agreement that we came to similar conclusions provided the metrics for the assignment; and most of us agree that we would go for the 15-year loan to avoid the huge amount of interest that ends up being paid. However we can see the flexibility that comes with the 30-year loan that would allow you to invest in other areas. All in all to put a little extra cash in our pockets we plan to go with the loan that has the most minimal interest rate with the shortest term of the loan to avoid any extra payments besides the additional monthly payments that we will choose to make. The additional monthly payments have you spending more to pay less and we all want to pay less.