Question

Help please!

Welcome to your virtual bank. For this assessment, assume the mortgage amount is the sale price of the house you chose. Based on your credit score, you are offered a fixed rate, an adjustable rate, and a balloon mortgage. Each is described below. For each mortgage option, submit the following to your instructor:
An explanation of the terms.
Fill in the table.
Calculate the total cost of principal and interest.


Table one:
Fixed Rate Mortgage: 5.2% for 30 years
Year Monthly Payment # of Payments Total Cost for Each Period
1-30
Total

Table two
Adjustable Rate

Answer 1

Adjustable Rate Mortgage: 3% with terms 5/1 with a 2/6 cap for 30 years
(Assume the interest rate increases by 1.25% after the initial period and every 10 years thereafter.)
Year Monthly Payment # of Payments Total Cost for Each Period
1-5
6-15
16-25
26-30
Total

Table three
Balloon Mortgage: 4% fixed interest rate with terms 30/7
Year Monthly Payment # of Payments Total Cost for Each Period
1-7
Balloon Payment 1
Total

This stuff I dont get all I know is that this is the formula:

m=p*i(1+i)^nt/(1+i)^nt-1

Answer 2

I Need it for this information

Principal & Interest:
$1,203
Homeowners Insurance:
$110
Taxes:
$315
Price of Home:
$315,000
Down Payment:
20%
Credit Score:
Excellent (740-850)