Help tough question about financing a home?
Introduction When a person or couple, a house, one of the most important is a business decision to finance. There are several ways to finance the purchase of residential property are the advantages of each, the method of choice to make in a given set of circumstances make. Choosing a method of multiple for a given set of conditions is the subject of this case study. Three modes of financing are described in detail beschrieben.Das criterion is: use the financing plan, the largest amount of money left at the end of a period of 10 years. Therefore calculate the future value of each plan and choose to do so with the greatest value Wert.PlanBeschreibungEin30 years paying a fixed rate of 10% per annum interest, 5% mortgage Anzahlung.B30 year variable rate (ARM) , 9% the first 3 years. 9.5% in year 4, 10.5% in years 5 to 10 (adopted), 5% rate Anzahlung.C15 year fixed rate of 9.5% per year of interest, information about filing 5% is connected property prices $ 150,000. · House will be sold in 10 years, another $ 170,000 (net proceeds after expenses) and insurance tax · (T & I) amount of $ 300 per Month of delivery: maximum .. $ 40,000 for the down payment, $ 1600 per month, including T & I. • Costs for new loans. origination fee of 1% tax tax investigation of $ 300 is $ 200, attorneys’ fees € 200 processing fee of $ 350, costs of receivership for $ 150, others 300 fee • Every $ money down payment or monthly payments of interest without tax gain 1 / 4% per month of study verbracht.Case Übungen1. Rate Plan C2. What is the total amount of interest in the plan A 10-year period paid? Fifth To increase the amount of a payment plan for each interest rate cost increase of 1%?