Property Investment
Introduction:
The best loan for a client is usually the one that is both affordable and the least costly over the chosen investment period. For this assignment you look at the client’s needs and recommend the best loan option based on the information provided.
The following Course Outcome is assessed in the assignment:
MT361-6: Recommend the best loan choice for a real estate client.
Scenario: Margo, age 35 wants to wants to get a mortgage loan from the bank to purchase a second home in Tampa, FL. She has a very successful business and currently lives in a condo in Dallas, Texas. Her income is currently $130,000 dollars a year as a physician’s assistant. She recently got an offer to join another practice for $150,000 per year.
She has lived in her condo for 5 years, and has a remaining balance of $150,000. Over the last five years, she has seen the value of her condo go from her purchase price of $300,000 to be worth $360,000 today. She has family in Tampa and would like a home she can go to when she visits her family. She has a car that she has paid off in the last five years and her FICO score is 720.
Determine and describe what property she should purchase if she wants to be near or on the ocean, and that can be rented out most of the year. You can use a common real estate website to explore options.
Explain the kind of mortgage (i.e., loan) for which she should apply based on your calculations of the housing-to-expense ratio and the debt-to-income ratio. Show your calculations.
Access the Unit 8 Assignment grading rubric.
Respond in a minimum of 250 words in a double-spaced Microsoft® Word® document, with additional title and reference pages, using APA format and citation style.