Serious Inquirer Only!!! Corporate Finance homework. 700 words

  

700 words

Find five different online mortgage lenders such as

http://www.lendingtree.com/

.

From these five lenders, find the following mortgage rates: 10 year (if available), 15 year (if available) and 30 year.

Convert these rates into Effective Annual Rates (EAR’s).  

Discuss which rate is actually the lowest rate and highest rate. Why is this the case? 

· Present the rates in a table listing the lender, the rate, time period and any provisions.

· Why do the different lenders have different rates?

· What are three common mistakes most homebuyers make when looking at quoted mortgage rates?

· Keeping the time value of money in mind, if an investor choses the 30 year mortgage, what does that say about their opinion of the time value of money?

· Is the difference in rates going to have a material impact on the cost to the home buyer? Explain your answer.