Reference no: EM132298617
PROJECT - MORTGAGE CALCULATOR
Instructions for the Project - Build a mortgage calculator in Excel 2016. The calculator should have the following features:
It should be capable of calculating the maximum amount a home-buyer can borrow, based on the user's choice of preferred output. The appropriate inputs should include but not limited to: family incomes and assets, living expenses and debts, and regulations on deposit of residential property loan.
It should allow users to calculate the value of the outputs based on one of three different types of mortgage
- Normal Mortgage
- Growing Annuity Mortgage (payments grow at a constant rate over the life of the mortgage aka a growing annuity)
- Interest Only Mortgage (payments cover only the interest component until the final payment which covers the entire principle of the mortgage)
The calculator should be capable of dealing with payments occurring over varying payment frequencies
The calculator should contain an amortisation table with at a minimum the following columns (payment, interest component of the payment, principle component of the payment and principle balance)
The calculator should be capable of dealing with items such as loan processing fee/low equity margin.
The calculator should contain a graph breaking down payments.
The calculator should follow the rules of good financial model design.
Students are expected to be able to explain or demonstrate any features or techniques in their assignments if requested.