Math 1050
Group Project: Buying a House
Select a house from a real estate booklet, newspaper, or website. Cut out the picture and/or
description of this house and attach it to this lab. Assume you are paying the asking price for
the house. (Pick something reasonable, between $80,000 and $200,000.)
Its listed selling price is ______________________
Down Payment: Assume that you are going to make a 10% down payment on the house.
Determine the amount of your down payment and the balance to finance.
Down Payment______________ Mortgage Amount__________________
Interest Rates: Consult a lending institution and ask for its interest rates for both a 15_year and
a 30_year fixed rate mortgages with no "points."
Name of lending institution____________________________________
Rate for a 15-yr mortgage ______ Rate for a 30-yr mortgage ______
Monthly Payment: Calculate the monthly payment for both loans (rounding up
to the nearest cent) by using the following formula . Show your work.
15-yr Monthly Payment ________________ 30-yr Monthly Payment _____________
*This monthly payment covers only the interest and the principal on the loan. It does not cover
any insurance or taxes on the property.
Amortization Schedule: In order to summarize all the information regarding the amortization of
a loan, construct a schedule that keeps track of period (payment number), amount of payment,
interest, balance reduction and unpaid balance. A spreadsheet program is an excellent tool to
develop an amortization schedule.
Note: the following directions are for QuatroPro. If you do not have access to QuatroPro you
can find search the Web for Amortization Schedules.
1 1
APR
n
nY
APR
n
P
PMT
