Fixed or Adjustable Rate Mortgage Table

**Fixed or Adjustable-Rate Mortgage Table**
Circumstance	Fixed (F) or Adjustable (A) Rate	Justification (Cite a quote from the bankrate.com lessons as a part of two of your justifications)
(A) You plan to live in the house for three years.
(B) You expect to be on a very tight budget during the next several years.
(C) You tend to have a low risk tolerance.
(D) You expect mortgage rates to continue the trend of the past year. To learn the trend of mortgage interest rates, view the Mortgage Rate Trends for 30 and 15 year fixed rate mortgages and the one year ARM (over the one year period) at the Mortgage-X Web site.

**How Much Can You Borrow Table**
Type of Mortgage	Maximum Loan Amount You Can Borrow	Maximum Monthly Mortgage Payment You Can Afford
30-Year Fixed-Rate Mortgage
15-Year Fixed- Rate Mortgage
1-Year Adjustable-Rate Mortgage (to be paid back over 30 years)

**Home and Mortgage Choice Table**
**($75,000 Mortgage)**
Type of Mortgage	Monthly Mortgage Payment	Total Interest Paid Over the Life of the Loan
30-Year Fixed-Rate Mortgage
15-Year Fixed Rate Mortgage

Based on the data in this table and the How Much Can You Borrow Table, which loan would you qualify for if you bought the $93,500 home and thus had a mortgage of $75,000? Explain.

**($50,000 Mortgage)**
Type of Mortgage	Monthly Mortgage Payment	Total Interest Paid Over the Life of the Loan
30-Year Fixed-Rate Mortgage
15-Year Fixed-Rate Mortgage

Based on the data in this table and the How Much Can You Borrow Table, which loan would you choose if you bought the $62,500 home and thus had a mortgage of $50,000. Justify your choice.

As a result of completing the analysis above, which house and which mortgage would you choose? Explain.

In a few years, you will more than likely actually be involved in buying a home and choosing a mortgage. List at least two important concepts or principles that you feel you have learned as a result of completing this financial choice which will help you in choosing a mortgage.