1. You are buying a house valued at $500 000 and you have saved $80 000. Use two different sources (banks, credit unions, insurance companies, ... and provide appropriate references) to determine the terms and conditions for a mortgage that will best suit your income and personal circumstances. In your answer, you must explain the advantages and disadvantages for each of the following:
a.different amortization periods,
b.different interest terms,
c.different payment frequencies, and
d.fixed-rate versus variable-rate mortgages.
Determine the total interest that you would pay on the loan, assuming that all conditions remain as initially negotiated. Explain why you would or would not try to pay off your mortgage before it is due.
a.different amortization periods,
b.different interest terms,
c.different payment frequencies, and
d.fixed-rate versus variable-rate mortgages.
Determine the total interest that you would pay on the loan, assuming that all conditions remain as initially negotiated. Explain why you would or would not try to pay off your mortgage before it is due.
