Team 3 Economic Analysis Team ProjectTeam MembersOverviewSlide 4Slide 5Team 3Economic Analysis Team Project Home FinancingTeam Members•Jason de la Guerra - Organizer•Michael Jauregui - Summarizer•Jerry Lessley – Techie•Kevin Navares – Techie•Adjustable Rate Mortgage (ARM)•Spread Sheet Development•Federal Housing Administration (FHA/HUD)•Fixed Rate Mortgage (FRM)Overview•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.•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
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