Paper, Order, or Assignment Requirements
This assignment requires both the calculation and explanation, such as advantages and disadvantages, of each mortgage loan type available in the market (e.g., Adjusted Rate Mortgage, Fixed Rate Mortgage and Hybrid Mortgage). The calculation, in this case, should only involve formulas discussed in the lecture materials provided (attached in this account). Kindly refer to the assignment question for details.
Please spend more words and space on the various mortgage loans comparison and assessment instead of the general market condition. In depth assessment of the key issues affecting the mortgage loan decision making that leads to a short conclusion is highly regarded.
The assessment must not include excessive referencing to the point where the argument simply becomes a restatement of facts from many websites. A good example would be: advantages explanation only includes one referencing just as disadvantages explanation includes one referencing, instead of many referencing and little opinions.
2015 SESSION 1
There should be a maximum of 4 pages (excluding appendices) with font size 12. All data and information sources must be properly acknowledged. The assignment comprises 20 per cent of the total mark for the course.
Who wants (that notorious) ARM? John is thinking about taking out a mortgage loan to buy a house in Sydney. He knows it is very likely that he will sell his house after 5 years because he will either get a promotion at the company he currently works in and thus can buy a bigger house or find a job in another city. Look at the mortgage interest rate information online at http://compare.smh.com.au/homeloans and help him find out what kind of loan (e.g. 15-year FRM, 15-year ARM or 5/1 ARM) is the best for him.
Work out his estimated payment under different loan choices and the effective yield or cost of each (CALCULATION).