A couple found a house selling for $113,500. The taxes on the house are $1400 per year, and insuarnce is $320 Per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15%0 Jown payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4750. They nave more than 10 monthly payments on a car, a boat, and furniture. The total monthly payments for these tems is $430. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. a.) Determine the required down payment. b.) Determine the cost of 3 points E.) Determine 28% of their adjusted monthly income. d.) Determine the montly payments of principal and interest for a 20-year loan. e.) Determine their total monthly payment, including homeowners' insuarance and taxes. F.) Determine whether the couple will qualify for the 20-year loan. g.) Determine how much of the first payment on the loan is applies to the principal.

A couple found a house selling for $113,500. The taxes on the house are $1400 per year, and insuarnce is $320 Per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15%0 Jown payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4750. They nave more than 10 monthly payments on a car, a boat, and furniture. The total monthly payments for these tems is $430. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. a.) Determine the required down payment. b.) Determine the cost of 3 points E.) Determine 28% of their adjusted monthly income. d.) Determine the montly payments of principal and interest for a 20-year loan. e.) Determine their total monthly payment, including homeowners' insuarance and taxes. F.) Determine whether the couple will qualify for the 20-year loan. g.) Determine how much of the first payment on the loan is applies to the principal.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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