Construction Loan

Download Data File:  SC2_Data

A construction loan gives new owners the money they need to build a home. Unlike a standard mortgage, the term on a construction loan only lasts for the amount of time it takes to build the home—usually one year or less. Once the construction is complete, you transition to a mortgage.

Review the construction loan details. Compare the 30-year vs a 15-year loan by calculating the Monthly Loan Payment.

New Home Construction Worksheet

1. Open the file named SC2 Data. Save As SC2 Construction Loan.
2. Click to cell B22. Using the PMT Function calculate the Monthly Payment for the 30-year loan. Display a positive payment amount.
3. Click cell E22. Using the PMT Function calculate the Monthly Payment for the 15-year loan. Display a positive payment amount.
4. Apply any number formatting that aids in the readability and professionalism of the worksheet.
5. Make the following page setup changes to the worksheet:
   • Center horizontally on the page
   • Create a footer with the date on the left and the file name on the right.  Make sure that both the date and the file name will update automatically.
6. Check the spelling on all of the worksheets and make any necessary changes.
7. Save the SC2 Construction Loan workbook and submit the workbook as directed by your instructor.

Attribution

Adapted by Mary Schatz from How to Use Microsoft Excel: The Careers in Practice Series, adapted by The Saylor Foundation without attribution as requested by the work’s original creator or licensee, and licensed under CC BY-NC-SA 3.0.