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Fixed-rate Mortgages and Adjustable-rate Mortgages

Imagine you work for an accounting firm and a client has told you he needs a loan of $120,000 to purchase a house. His monthly income is $4000, and he is single with no children. He has $14,000 in savings that can be used for a down payment. Based on this information, complete the following. 

• Find the current rates available from local banks for both fixed-rate mortgages and adjustable-rate mortgages (ARMs). 

• Analyze the offerings and summarize in writing the best options for your client, along with the pros and cons of each option.

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