Affordability and professional-review packet
Bring your evidence, calculations, decisions, and controls together in a finished self-study submission.
Build your decision packet.
Compare hypothetical financing choices with equal $150,000 principal: an 8% annual interest-only payment and an 8% nominal annual rate amortized monthly over 30 years. Both are assumed due in 24 months for this exercise. Ignore fees only for the first arithmetic comparison, then list the omitted costs and legal questions.
- A payment and 24-month balance comparison with formulas and assumptions
- A dated cash calendar including taxes, insurance, maintenance, reserves, and exit cash
- A downside case with delayed financing and an unplanned repair
- An independent-review packet covering ownership, authority, documents, default, timing, and applicable protections
- A decision note that separates ability to pay monthly from ability to complete the exit
Review the worked example and grading guidance
For interest only, $150,000 × 0.08 / 12 = $1,000 monthly. There is no scheduled principal reduction, so $150,000 remains due at the assumed maturity. For monthly amortization, r = 0.08/12 and n = 360. Payment P = principal × r / (1 − (1+r)^−n), approximately $1,100.65. The 24-payment balance is approximately $147,389.91 using the unrounded payment. The larger scheduled payment has reduced principal modestly; it has not removed the substantial maturity obligation. A complete comparison adds actual fees, reserves, taxes, maintenance, insurance, contractual costs, and cash timing. Neither arithmetic nor a course exercise establishes whether an agreement is lawful, suitable, or enforceable. Prepare the evidence and questions for independent review before any commitment.
Compare the reasoning with your response. Identify missing assumptions, correct any calculation, and explain why a different decision may be justified by different evidence.
Self-review your finished packet.
Completion requires a worked response of at least 80 characters, every mastery criterion checked. This records self-study completion, not professional qualification.