1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make a down payment of $40,000. The monthly payment on a 15-year mortgage will be $2,000. On a 30-year mortgage, the monthly payment will be  1,350. which of the following would you recommend? A.) 15 year option B.) 30 year option C.) They cannot afford to buy a house at this point.

Q: (a) How much does she need for the down payment? How much money does Maria need to borrow? (b) What…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Mr. and Mrs. Murthy have a totally monthly gross income of $6000.00. They are interested in…

A: GDSR is a metric that measures housing costs as a proportion of the gross income of the borrower.

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A: we have to find out monthly payment under each option and calculate interest under each option.

Q: Suppose you are thinking about purchasing a house for $1,400,000. The 30-year fixed-rate mortgage…

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Q: (6) Marian has just purchased a house. She has a $400,000, 20-year mortgage with interest at an…

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A:

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.