I need parts 4-6 In this part of the project, you will be purchasing the home you chose in the Budget Project. Youwill need to obtain a loan from a financial institution since you cannot pay cash for your home.You will be researching three different loan scenarios and determining which loan option bestfits your situation and needs.Purchase price of the home you chose from the Budget Project:431,873_Part 1: Financing your homeLoan Scenario 1: In this scenario, your financial institution is offering you a 30-year fixedmortgage with a 20% down payment at a 3.43% fixed rate.Determine the following:1. Down payment = price *20% = $431,873 *.20 = $86,374.60%3D2. Amount finance = price *80% = 431,873 * .80 = $345,498.40%3D3. Monthly payment = $1,537.9730*12 = 3601%3.43PV345498.40PMT-1537.97FVP/Y12C/Y12PMTEND4. What is the total cost of the loan over 30 years? How much of this cost is interest?5. What is the total you will expect to pay at closing for this loan option? Closing costs mustbe paid before a bank will finance your loan. These costs include a fee to close, the downpayment, and first month's mortgage payment. Assume the fee to close a loan is $2700.6. What are the advantages of this loan? What are the disadvantages?ds+ 100%2:06 PM10/11/2020

According to the question we need to find the total cost, Interest paid, closing amount on the loan,…

Answered: I need parts 4-6

Business

Finance

I need parts 4-6

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 10FPE

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