A lender requires that monthly mortgage payments be no more than one-third of gross monthly income, with a maximum term of 20 years. If you can make only a 20% down payment, what is the minimum monthly income you would need in order to purchase a $420,000 house when the interest rate is 12% compounded monthly?
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A lender requires that monthly mortgage payments be no more than one-third of gross monthly income, with a maximum term of 20 years. If you can make only a 20% down payment, what is the minimum monthly income you would need in order to purchase a $420,000 house when the interest rate is 12% compounded monthly?
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- You need a 15-year, fixed - rate mortgage to buy a new home for $230,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 180 - month loan. However, you can afford monthly payments of only $1,000, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,000? Multiple Choice $ 301,801.43 $115,924.72 $323, 580.91 $311, 135.49 $106, 142.4You need a 20-year, fixed-rate mortgage to buy a new home for $230,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 240-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $950? Multiple Choice O O $88,924.29 $103.581.46 $386,349.21 $374,758.73 O $401,803.18When applying for a mortgage, find one that allows you to contribute more money than the required monthly payment. The following problems illustrates why. Let’s say that you have a 30- year $152,700 fixed-rate mortgage at 3.89% interest compounded monthly. Instead of paying the regular monthly payment for the mortgage, you decide to add an additional $160 to each of your monthly payments. By paying the extra $160 a month, the extra amount in each payment is applied directly to reducing the principal. This means that (1) the length of the loan is reduced since the principal will be reduced faster (than if no extra amount was paid with your monthly payment) and (2) you eventually pay less in interest than if you were to pay the only regular monthly payment required. Answer the following: Find out how many years it will take you to pay off the loan if you were to pay the additional $160 with each monthly payment? Use the TVM Solver. How much money will you save in interest if you pay…
- You need a 30-year, fixed-rate mortgage to buy a new home for $250,000. Your mortgage bank will lend you the money at an APR of 5.45 percent. However, you can only afford monthly payments of $900, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Balloon payment ( Prev 7 of 10 Nextes Big Dom's Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. a. What rate should the shop report? APR b. What is the effective annual rate? EARSuppose you want to purchase a house. Your take-home pay is $2830 per month, and you wish to stay within the recommended guidelines for mortgage amounts by only spending 1/4 of your take-home pay on a house payment. You have $15,700 saved for a down payment and you can get an APR from your bank of 3.95%, compounded monthly. What is the total cost of a house you could afford with a 15-year mortgage? Round your answer to the nearest cent, if necessary.
- You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 7.6 percent APR for this 300-month loan. However, you can afford monthly payments of only $850, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $850?You need a 25-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 300-month loan. However, you can afford monthly payments of only $900, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. Required: How large will this balloon payment have to be for you to keep your monthly payments at $900? A) 48,522.47 B) 341,563.19 C) 67,932.38 D) 366,212.08 E) 352,127.00 Only typing answer Please explain step by step without table and graphSuppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and you will be required to make monthly payments of $3,700 what is the price you paid for your home?
- Suppose your gross monthly income is $5,600 and your current monthly payments are $525. If the bank will allow you to pay up to 36% of gross monthly income (less current monthl payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)A borrower takes out a 30-year loan for a house worth $250,000. If the annual interest rate is 6%. if the borrower chooses to pay $40,000 at the end of year 12, what will the new payments be assuming the loan maturity will not be reduced?You purchase a home for $525,000 by taking out a standard mortgage at 3.3% interest compounded monthly, for 30 years. To avoid other fees and higher interest, you pay 10% of the purchase price right now (and thereby reduce the amount you finance). a) How much are you financing? (What is the loan amount?) b) How much will you pay each month? What is the periodic interest rate? How many compounding periods will there be? c) How much equity will you have in 16 years? d) How much have you paid in total over these 16 years? e)How much have you paid in interest over these 16years?