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.
The real estate listing sheet or link is provided. 0-4 Points 5-6 Points 7-8 Points 9 Points Down Payment Description Description is missing or inadequate. Down payment option described in detail; missing at least one key element. Down payment option described in detail; missing minor elements. Down payment option described in detail.
Financing Options
Options are missing or inadequate; spreadsheet missing.
Both projects described in detail; spreadsheet; missing at least one key element.
Both financing options described in detail; spreadsheet used; missing minor elements.
Both financing options described in detail; spreadsheet used. Amortization Schedules Amortization schedule for the life of both financing options are missing or inadequate. Amortization schedule for the life of one option is provided. N/A Amortization schedule for the life of both financing options are provided.
Financing Options Analysis
Analysis is missing or inadequate.
Analysis provides insight into similarities and differences of the two financing options; missing at least one key detail.
Analysis provides insight into similarities and differences of the two financing options; missing
Analysis provides insight into similarities and differences of the two financing options.
minor details.
Clear and Professional Writing
Errors impede professional presentation; guidelines not followed.
Significant errors that do not impede professional presentation.
Few errors that do not impede professional presentation.
Writing and format are clear, professional, and error-free.
