You're a housing counselor at a NYC community organization. Your mission: find the most expensive home each client can afford while keeping their finances healthy.
Your Challenge
- Maximize home price while staying affordable
- đĸ Green = optimal | đĄ Yellow = acceptable | đ´ Red = problem
- Adjust price, down payment, and loan type to find the ceiling
- Get within 5% of maximum for full points!
Scoring
- 10 points: Within 5% of maximum affordable price
- 5 points: Affordable but not maximized
- 0 points: Unaffordable (DTI >43% or insufficient reserves)
That's Mango. He has opinions. He works for the bank. Use your judgment. Click on the cat for more.
Final Results
0%
Performance Rating
đĄ What You Just Learned
You just applied the core concepts of Time Value of Money:
- PV/PMT relationship: The loan amount is the present value of all future payments
- Inverse rates: Higher interest rates mean smaller affordable loans
- Amortization: Early payments are mostly interest; later payments are mostly principal
- Total cost: A 30-year mortgage means paying 80-100% of the home price just in interest
đ¤ Reflect:
What surprised you most? Which client's situation felt closest to your own future?
đ¸ Submit to Brightspace
Take a screenshot of this screen showing your final score and submit it to complete this assignment.