A couple want to buy a house priced at $140,200. Last year, the property tax and fire insurance bills were $2,112 and $750, respectively. Neither is expected to increase significantly in the coming year. If the couple can qualify for a 30-year conventional mortgage at 8.5% annual interest, what is the total monthly bill they should expect for the mortgage, property tax, and fire insurance?

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.

Q: The Potters want to buy a small cottage costing $120,000 with annual insurance and taxes of $740 and…

A: Mortgages are a sort of loan that can be used to buy or keep up a house, land, or another piece of…

Q: Suzan Long is considering buying a home for$350,000.(a) If she makes a down payment of $50,000…

A: In this problem, a person purchases a home for $350,000 and make down payment of $50,000. The…

Q: Joe and Jane are considering the purchase of a home where the principal and interest will be $750…

A: To determine if Joe and Jane qualify to buy the home based on their income and existing debts, we…

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Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Chelsea and Bill are buying a house on a 30-year mortgage.  They can afford a $1200 per month…

A: Using excel PV function, to calculate purchase price of a house

Q: The McBertys have $40,000 in savings to use as a down payment on a new home. They also have…

A: To calculate the price range for houses for a 30-year loan, the formula isDown payment  + Equated…

Q: Ann wants to buy an office building which costs $2,000,000. She obtains a 30 year Interest Only…

A: Amortization refers to the regular and equal repayment of loan amount spread over the period of time…

Q: The Hentys are considering buying a house and are researching the potential costs. Their adjusted…

A: Front end ratio, also known as the front-end debt-to-income ratio (DTI), is a financial ratio that…

Q: Roger and Susan are negotiating a mortgage on a new home. They have decided that the maximum…

A: Mortgage loans are secured loan and payble by easy monthly installments that carry the payment for…

Q: A while ago, a couple purchased a home with a sales price of $850,000, making a 15% down payment and…

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Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate…

A: Given: Amount available for downpayment : $30,000 Monthly mortgage payment: $1200 The amount owed to…

Q: When Should Michael Pay Housing Costs? On April 1 of next year, Michael is purchasing a $225,000…

A: The LTV ratio is calculated using the following formula: LTV =Principal amountMarket Value of the…

Q: The McBertys have $20,000 in savings to use as a down payment on a new home. They also have…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

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Q: The McDaniel family is purchasing a home, and their mortgage. The home costs $156,000 and they have…

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Q: Your brother is considering the purchase of a home rather than renewing the lease on his two-bedroom…

A: Monthly mortgage refers to an amount that is paid at every month for the repayment of total mortgage…

Q: 1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make…

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Q: You recently did your finances, and realize you can afford a monthly paymentof $3,220 for a house.…

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Q: A couple requires a mortgage loan of $182,000. They figure they can afford $1400 a month. If they…

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Q: Donald and Alex have a combined gross monthly income of $5500. They want to buy a house in a…

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Q: (a) Calculate the amount of the annual payment? (b) Create and complete the amortization

A: An annuity is the payment of an amount over a period of time at a fixed interval of time.

Q: The Johnson family is interested in buying a home. The family is applying for a $200,000 30-year…

A: Here,MortgageAmount is $200,000Time Period of Mortgage is 30 yearsMortgage Rate is 7.5%

Q: George and Barbara want to buy a house, they have combined incomes of $150,000 annually.  Property…

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Q: You wish to buy your first home. Your annual gross income is $84,000. You also have monthly payments…

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Q: John and Judy Jacobson have purchased a house for $450,000. They are putting 20% or $90,000 down…

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Q: Jose and Rosa are looking for a condo. Their combined gross annual income is $61,000. The best…

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Q: Cindy and Rick purchased a home for $145,000 and financed it with a 30-year fixed-rate loan at 6.25%…

A: Introduction Mortgage Loan: A mortgage is a loan that a borrower takes out to buy or retain a house…

Q: five years from now if dividends grow at a constant 3%?

A: In this problem we have to calculate future value dividend at growth rate.

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.