Math 1050 College Algebra Term Project

Math 1050College Algebra

Term Project

Project Team• Pediatrician• Salary $170,000

Alyssa McEwen – Insight

• Business Management• Salary $116,500

Lynsie Brown – Results

• Software Engineer• Salary $145,600

Justin Stillwell – PowerPoint

• Pharmacist• Salary $108,888

Mitchell Carter

• Registered Nurse• Salary $50,100

Shonte Sherwood – Conclusion

• Healthcare Management• Salary $90,000

Clayton South

Mortgage Formula

Results (Part 1) We discovered the rate of a 15 year loan is significantly less

than a 30 year loan

An average of 2.71% for 15 years and 3.6% for 30 year loans

Between the 6 of us included in this project, we would collectively save a whopping $1,191,621 in getting a 15 year vs. 30 year loan

That is an average savings of $198,604

Alyssa McEwen’s Home$499,000.00

The banks take on less risk with 15 year loans. They get their money back sooner so they’re more generous with interest rates in order to entice buyers

Adding an additional $100 a month to our payments averaged out to pay off our homes 6 months earlier, saving an average of $4066 in interest

We would save an average of $22,711 in the monthly payments, that we would of spent over those six months

Results (Part 2)

Lynsie Brown’s Home$424,900.00

The ideal way to go with a mortgage loan when comparing a 30 year fixed to a 15 year fixed loan, is with the 15 year option because of having a smaller APR percentage

On a home with a purchase price of $359,900, with a 10% down payment, the note rate on a 15 year was 2.5% and on a 30 year was 3.25%

The amortization schedule reflects interest saved of $118,720.19 when choosing a 15 year over a 30 year

Conclusion (Part 1)

Justin Stillwell’s Home$999,000.00

Another advantage of going with a 15 year option is much more of your monthly payment is going towards principal as compared to interest, starting with your very first payment

On the 30 year loan it would take you 8 years and 9 months before payments applied towards principal are greater than interest

  Although your monthly payment is higher on the 15 year

option, your home will be paid off in half the time without your payment being doubled

Conclusion (Part 2)

Mitchell Carter’s Home$499,900.00

If you couldn’t find your ideal home within your price range, you could always buy a cheaper home using the difference to renovate it

Purchase a cheaper home in your ideal neighborhood and put the changes you want to make it your own. When your home is completed it will be worth more than what you put into it

Save for a larger down payment to get a larger home, or have a cheaper monthly payment

Insight – New Ideas for Buying a Home (Part 1)

Shonte Sherwood’s Home$359,900.00

Having a home inspection before putting in a bid will inform you of any problems in the home and possibly lower the asking price

Buying a short sale/foreclosed home will give you a more of a home for a lesser price

Renting out a room could help you pay your home off quicker, allowing you to purchase that dream home a little sooner

Insight – New Ideas for Buying a Home (Part 2)

Clayton South’s Home$399,000.00