Team 3 Economic Analysis Team Project

1
Team 3Economic Analysis Team Project

• Home Financing

2
Team Members

• Jason de la Guerra - Organizer
• Michael Jauregui - Summarizer
• Jerry Lessley Techie
• Kevin Navares Techie

3
Overview

• Adjustable Rate Mortgage (ARM)
• Spread Sheet Development
• Federal Housing Administration (FHA/HUD)
• Fixed Rate Mortgage (FRM)

4

• Adjustable Rate Mortgages (Jason)
• Pros
• Lower initial payments due to lower starting
  interest rate.
  
• Ability to qualify for higher loan amount
• Cons
• Temporary lower interest rate.
• Higher payments over life of loan if interest
  rate increase.
  
• Spread Sheet (Mike)
• Determine best fit loan based on financing
  criteria.
  

5

• Federal Housing Administration
• Pros
• Federally funded
• Designed to assist first time buyers and others
  who would otherwise have difficulty meeting down
  payment requirements for normal loans
  
• Anyone with average credit and steady income for
  mortgage payments can be approved
  
• 100 of the money to close the loan can be a gift
  from non-profit organizations, a relative, or a
  government agency
  
• Cons
• Statutory limits on how much can be borrowed
• Government agency