Description
- 10-year (if available) for fixed-rate mortgage
- 15-year (if available) for fixed-rate mortgage
- 30-year for fixed-rate mortgage
- What are 2 things about the sample Web site given above that could be applicable to a consumer or investor?
- Present the rates in a table. List the quoted rate and EAR rate, the lender, and the maturity of the loan. Show your work for each calculation.
- What is 1 mistake people make when calculating their mortgage payments? Explain your answer.
- Based solely on the EAR, which rate is the cheapest? Does this make sense?
- Why do the different lenders have different rates?
- Is the difference in rates going to make a huge impact on the cost to the homebuyer? Explain your answer.
Deliverable Length: 800–1,000 words
Explanation & Answer
Here is the answer. Thanks
Five Online Mortgage Lenders
Mortgage lenders means the persons or companies who provide money as loan against
the security interest in the real properties or assets (The Free Dictionary, 2017). Online mortgage
lenders performs the mortgage business through internet (Advisory HQ, 2015). The borrower
apply for the mortgage and perform all formalities over the internet. As compared to the
traditional mortgage service, less time is required online mortgage service. But, online mortgage
services are subject some additional terms and conditions (Advisory HQ, 2015).
Fixed Rates, and Effective Annual Rate offered by Five Online Mortgage Lenders
Top five online mortgage lenders in the market include Amerisave, Guaranteed Rate,
Lending Tree, Sebonic Financial, and Quicken Loans (Advisory HQ, 2015). The loan rates
offered by these online mortgage lenders are as follows.
Online Mortgage
Lenders
Amerisave
Guaranteed Rate
Lending Tree
Sebonic Financial
Quicken Loans
10 Year fixed-rate
mortgage
Not Available
Not Available
3.10%
3.12%
Not Available
15 Year fixed-rate
mortgage
2.75%
3.25%
3.23%
3.24%
3.25%
30 Year fixed-rate
mortgage
3.50%
3.99%
3.88%
3.87%
3.99%
In consideration of the monthly mortgage, the effective annual rate (EAR) of the 10 year
fixed rate mortgage, 15 year fixed rate mortgage, and 30 year fixed rate mortgage of the
Amerisave, Guaranteed Rate, Lending Tree, Sebonic Financial, and Quicken Loans are as
follows.
Effective Annual Rate (EAR) of the Loan with Different Maturities
Online
Mortgage
Lenders
Amerisave
Guaranteed
Rate
Lending
Tree
Sebonic
Financial
Quicken
Loans
10 Year
fixed-rate
mortgage
Not
Available
Not
Available
3.10%
3.12%
Not
Available
10 Year
Effective
Annual Rate
1...