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 = comfortable | đĄ Yellow = expensive | đ´ Red = problem
- Adjust price, down payment, and loan type to find the ceiling
- Meet the client's goal and get close to the top price for full points!
Scoring
- 10 points: Meets the client's goal, right loan, within 10% of the highest price that fits
- 5 points: A bank would approve it, but it misses the goal, uses a weaker loan, or leaves room
- 0 points: A bank would not approve it (debt over 43% of income, or not enough reserves)
That's Mango. She has opinions and she works for the bank. When she's đŧ, her advice is for the bank, not for you. When she's đē, she's just explaining the math. She'll help, if she's in the mood. Tap 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: At 6-7%, a 30-year mortgage means paying more in interest than you borrowed (about 115-140% of the loan)
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.