You will be an advisor to two friends, Demarco and Tanya, who are buying their first home. They have applied for three potential mortgage offers with different financial institutions. Demarco and Tanya have reviewed their finances and budget.
• They currently make a gross income of $60,000 per year, or $5,000 per month.
• They would like to live in their new home permanently.
• They have $34,000 saved for a down payment, which should be 20% of the purchase price. • They found a house to buy, and the total purchase price will be $170,000. In your lesson, you learned about topics to consider when studying mortgages. Now, you will use mortgage calculators, which are tools offered by banks and financial institutions to help borrowers plan for a mortgage. Use what you have learned to study each opportunity carefully, and prepare to make a final recommendation to Demarco and Tanya.
Instruction: Study each investment opportunity.
Read each appendix, and review the type of mortgage being offered.