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project - Math 1430 Julia Head Math Project#2 Buying a...

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Math 1430 Julia Head October 23, 2007 Math Project #2 Buying a house can be extremely expensive when taking out a fixed rate mortgage. So I would like to break down loan by monthly payment from two different lending corporations and then add in the Lubbock county tax rate plus homeowners insurance. First off the house that I chose for this project is an average three bedroom house located at 2703 53 rd street. Its listed for $104,900 by Westmark Realtors. What some people don’t realize is that the majority of your payments goes to interest so for a thirty year mortgage you are paying much more than the total value of the loan its self. So after researching of mortgages I was offered a 6.375% thirty year fixed loan from Wells Fargo, and then a 6.25% thirty year fixed loan from Bank of America. So I will present the cost of owning a home. So after subtracting the twenty percent down payment required through the project, the loan came out to be $83,920. Using the rate of 6.375% from Wells Fargo, the present value formula and the amount of the loan I came up with a monthly payment of $523.55. As to what I
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