A couple found a house selling for $114,500. The taxeson the house are $1300 per year, and insurance is $340per year. They are requesting a conventional loan fromthe local bank. The bank is currently requiring a 15%down payment and 3 points, and the interest rate is10%. The couple's gross monthly income is $4750.They have more than 10 monthly payments remainingon a car, a boat, and furniture. The total monthlypayments for these items is $420. Their bank willapprove a loan that has a total monthly mortgagepayment of principal, interest, property taxes, andhomeowners' insurance that is less than or equal to 28%of their adjusted monthly income. Determine how muchof the first payment on the loan is applied to theprincipal. The amount of the first payment that isapplied to the principal is: (Round to the nearest cent asneeded.)

Answered: Image /qna-images/answer/4b07c5ec-f509-444a-a954-9714a278eff1.jpg

A couple found a house selling for $114, 500. The taxes on the house are $1300 per year, and insurance is $340 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4750. They have more than 10 monthly payments remaining

A couple found a house selling for $114, 500. The taxes on the house are $1300 per year, and insurance is $340 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4750. They have more than 10 monthly payments remaining

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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Kathy wants to buy a condominium selling for $95,000. The taxes on the property are$1500 per year, and homeowners' insurance is $336 per year. Kathy's gross monthly income is$4000. She has 15 monthly payments of $135 remaining on her van. The bank is requiring 20% down and is charging a 9.5% interest rate with no points. Her 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 her adjusted monthly income. (a) Determine the required down payment. (b) Determine 28% of her adjusted monthly income. (c) Determine the monthly payment of principal and interest for a 25-year loan. (d) Determine her total monthly payment, including homeowners' insurance and taxes. (e) Does Kathy qualify for the loan? (f) Determine how much of the first payment on the mortgage is applied to the principal. (g) Determine the total amount she pays for the condominium with a 25-year conventional loan.…
The Jacksons want to buy a condo in Langley. This will be their first property. Their combined gross annual salary is $108,000. They estimate that the property taxes are $2,400/year, strata fees $200/month and heating costs average $50/month. Banks use the affordability rule: no more than 32% of gross monthly hosehold income can go tawards paying the mortgage, property taxes, heating costs and 50% of the condo fees. What is the maximum monthly mortgage payment they could afford? Your Answer: Answer
This problem is a complex financial problem that requires several skills, perhaps some from previous sections.Clark and Lana take a 30-year home mortgage of $125,000 at 7.9%, compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1200 per month. (a) Find their regular monthly payment. (Round your answer to the nearest cent.) (a) Find their regular monthly payment. (Round your answer to the nearest cent.) (c) How many payments of $1200 will it take to pay off the loan? Give the answer correct to two decimal places. (d) Use your answer to part (c) to find how much interest they save by paying the loan this way. (Round your answer to the nearest cent.)
Your family just took out a 1-year $8000 personal loan to finance a home improvement project. The interest rate on the loan is 9%, with monthly compounding. How much is your family's monthly payment?
80) The Jacksons' gross monthly income is $8000. They have 17 remaining payments of $333 on a new car and 3 remaining payments of $69 on a washer and dryer. The taxes and insurance on the house are $135 per month. What maximum monthly payment does the bank's loan officer feel that the Jacksons can afford?
This problem is a complex financial problem that requires several skills, perhaps some from previous sections.Clark and Lana take a 30-year home mortgage of $122,000 at 7.4%, compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1300 per month. (a) Find their regular monthly payment. (Round your answer to the nearest cent.)$ (b) Find the unpaid balance when they begin paying the $1300. (Round your answer to the nearest cent.)$ (c) How many payments of $1300 will it take to pay off the loan? Give the answer correct to two decimal places. monthly payments(d) Use your answer to part (c) to find how much interest they save by paying the loan this way. (Round your answer to the nearest cent.)
A young couple buying their first home borrow $90,000 for 30 years at 7.4%, compounded monthly, and make payments of $623.14. After 4 years, they are able to make a one-time payment of $2,000 along with their 48th payment. (a) Find the unpaid balance immediately after they pay the extra $2,000 and their 48th payment. (Round your answer to the nearest cent.) (b) How many regular payments of $623.14 will amortize the unpaid balance from part (a)? Give the answer to one decimal point. (c) How much will the remaining debt be after the number of full payment periods in part (b) is made? (Round your answer to the nearest cent.) (d) How much will the couple pay over the life of the loan by paying the extra $2,000? (Round your answer to the nearest cent.) (e) How much will the couple save over the life of the loan by paying the extra $2,000? (Use your answer from part (b). Round your answer to the nearest cent.)

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