A family decides they want to spend no more than $203,410.19. $1,200 on their monthly mortgage payments. If they can get a 30-year fixed-rate mortgage with a 5.85% APR while making a 20% down payment, what is the most expensive house they can afford? $255,262.74 $203,410.19 $259,226.55 $207,381.24

A family decides they want to spend no more than $203,410.19. $1,200 on their monthly mortgage payments. If they can get a 30-year fixed-rate mortgage with a 5.85% APR while making a 20% down payment, what is the most expensive house they can afford? $255,262.74 $203,410.19 $259,226.55 $207,381.24

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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Dr. Genius buys a house for $1,000,000 on a 30 year loan at 2.5% APR. Dr Ridiculous buys a house for $1,000,000 on a 30 year loan at 6.5% APR because he thought the housing market was going to crash. What is the different in monthly payment on their mortgage? Group of answer choices A. $8,540 B. $2,205 C. $500 D. $3,600
Which of the following is a reason a borrower may want to refinance? O A. The borrower's house value declines O B. Lender's demand lower DTIS O C. Lender's demand lower LTVS O D. The borrower's credit score rises QUESTION 15 Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of $1,200 and monthly homeowner's insurance of $300. Apple bank has a maximum front end DTI limit of 28%. Considering only the front end DTI limit, what is the most they will allow Jim to spend on a monthly mortgage payment? O A. $82,500.00 O B. $84,000.00 OC. $5,500.00 O D. $7,000.00 Click Save and Submit to save and submit. Click Save All Answers to save all answers. GZED
Question
Suppose you have just purchased your first home for $550,000. At the time of purchase you could only afford to commit to a down payment of $55,000. In order to make the loan, the lender requires you to obtain private mortgage insurance (PMI) on their behalf. Suppose over time you paid down the principal of the loan to $535,000 and at that point in time you can no longer make any mortgage payments (i.e., you default on the loan). If the lender were to foreclose on your property and sell it for $508,000 (net proceeds), what would the lender's loss of principal be taking into consideration the protection of mortgage insurance? (Let's assume that the PMI in this case covers the top 25% of the loan.)
F3
A young couple has saved up $12,000.00 for a down payment on a home. They are currently paying $1700.00 per month to rent a condo. The couple is pre-approved for a 20-year mortgage at 7.9% and their realtor estimates that they will need to set aside $3500.00 for taxes and other costs at the time of sale. Part: 0/4 Part 1 of 4 (a) What is the price of the most expensive home they can buy without raising their monthly housing payment? The maximum price of a home the couple can afford is $. X 3 Espanol M
4. A general rule of thumb is that your monthly mortgage payment should not exceed 25% of your household's gross monthly income. Consider the situation of Jerry and Tracy, who just committed to a $400,000 mortgage on their dream home. They have reduced their financing choices to a 30-year conventional mortgage at 5% APR, or a 30-year interest-only mortgage at 5% APR. Their combined gross annual income is $100,000. 4-1 What is the monthly payment for the conventional mortgage? Do they qualify for the conventional mortgage? Why? 4-2. What is the monthly payment for the interest-only mortgage? Do they qualify for the interest-only mortgage? Why?
6
MC Qu. 09-66 Duane Miller wants to know what price home . Duane Miller wants to know what price home he can afford. His annual gross income is $67,200. He has no other debt expenses ond expects property taxes and insurance to cost $400 per month. He knows he can get a 8.00%, 15 year mortgage so his mortgage payment factor is 9.56, He expects to make a 30% down payment. What is Duone's affordiable home purchase price? (Round your answer to the nearest whole dollar.) Multiple Choice $165,514 $237,250 $216,378 $195,792 $266724
Person A has a take home pay of 3980 and wishes to spend only 1/4 of this pay on a monthly house payment. They have 18000 saved for down pmt and can get an APR of 5.35% from the bank, compounded monthly. Whats the total cost of a house Person A can afford w/a 15-yr mortgage? Round to nearest cent~
None
A homeowner has been paying a monthly mortgage payment of $716.40 on a 40-year loan at a fixed annual interest rate of 5.5%. After making payments for 7 years, the homeowner must sell the house and move to another state for a new job. What is the payoff for the mortgage? Round your answer to the nearest cent. $138,900.00 $261,660.50 $65,321.29 $130,747.24

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