Janet is purchasing a new house for $315,000. Her credit union requires her to make a 20% down payment, and the current mortgage rate it 6%. Janet is exploring different 10-year mortgage payment options. Use the principal and interest formula to determine Janet’s principal and interest payment if she makes he payments monthy.

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: (b) What is the total amount of interest EACH loan? Show your work. (c) Overall, how much more…

A: we have to find out monthly payment under each option and calculate interest under each option.

Q: Lauren and Serena each have 59-week loans. At the end of their terms, they each repay $3,800.…

A: The major difference between a simple interest rate & a compound rate is that the interest…

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: Sandra gets a $250,000, 30 year mortgage with annual payments of 4.0% rate.  What is the balance of…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

A: Amortization of loan refers to the equal and regular installment repayment of a loan spread over the…

Q: Please solve correctly and Ill rate well thanks need to do right. Olivia plans to secure a 5-year…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Use the formula or a calculator application to find the monthly payment on a home mortgage of…

A: Amortization of a loan refers to the gradual repayment of the principal amount borrowed over a…

Q: Hiram, a real estate professional, is representing a client interested in purchasing a 10-unit…

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

Q: nna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 20%…

A: We need to use loan amortization formula to calculate monthly payment. The formula is  PMT…

Q: Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a…

A: Compounding is an important technique which increases the effective interest rate. Effective…

Q: How much does she still owe when there is 1 year left on the loan?

A: Interest is charged by the lender on the amount of loan taken. At the initiation of loan repayment,…

Q: Angelina is buying a home for $208,000. She has a $37,000 down payment and the bank b offered her a…

A: Loans are paid by the monthly payments and these are equal monthly installments and these carry the…

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: You have been shopping for a new home. You have the choice of financing for your $300,000. You can…

A: Principle amount is $300,000 We have two Choices:- 1st Choice:- Rate of interest is 4.5% Loan…

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

A: A mortgage refers to a covered loan that is taken out for the purchase of a property which itself…

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

A: The monthly payment is the payment of the borrowed amount that has to be every month that includes…

Q: Jamie is going to buy furniture with a single-payment loan that is discounted. The loan will be for…

A: Step 1 APR The term annual percentage rate (APR) describes the annual interest rate you'll pay if…

Q: Anna is buying a house seling for $265.000. To oblain the morigage Anna la required to make a 10%…

A: 1) Down-payment  = House Price * 10%  = 265,000 * 10% = 26,500   2) Mortgage Loan  = House Price -…

Q: Ann obtains a 30 year Fixed Rate, Constant Payment Mortgage with monthly payments for $4,500,000 at…

A: Balloon payment is final payment required to be made to settle the loan amount.

Q: Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20…

A: Cost = $930000 downpayment = 30%*$930000 = $279000 Loan = $930000-$279000 = $651000 Monthly interest…

Q: Claire needs to borrow $5000 to pay for NHL season tickets for her family. She can borrow from a…

A: Loans are paid in equal monthly installments that carry the payment for interest and payment for the…

Q: offered her a 30-year fixed rate mortgage at 5.83%. What will be Angelina's monthly mortgage…

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Q: A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% APR compounded…

A: Loan or mortgage amortization refers to the repayment of loan amount. In the process of amortization…

Q: Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with a mortgage amount of $4,500…

A: Mortgage:A mortgage represents a financial arrangement where an individual or entity borrows funds…

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

A: The monthly payment on a loan refers to the repayment sum extended by the borrower every month for a…

Q: Celine has established that she can afford a weekly payment of $1,450.00. She would like to have a…

A: Mortgage amount refers to the money that is being borrowed by the borrower from the lender at a…

Q: Dolph can afford a monthly car payment of $418 for the next 5 years, with the first payment…

A: It is a case where the amount of loan to be borrowed by Dolph is to be calculated, based on his…

Q: A couple buys a $180000 home, making a down payment of 20%. The couple finances the purchase with a…

A: The monthly payment that the couple will make will remain fixed or the same throughout the loan…

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

A: As per our guidelines we are supposed to answer only 3 sub- parts if there are multiple sub-parts.…

Q: Angie wants to obtain a $500,000 mortgage, amortized over 25 years. Interest rates are currently 8%,…

A: The amortization is the systematic and regular repayment of loan and interest amount. Each payment…

Q: Todd Foley is applying for a $290,000 mortgage. He can get a $2,030 monthly payment for principal…

A: Calculation of number of months:Excel spreadsheet for calculation of number of months

Q: Jamal and Leila have been approved for a $200,000 15-year mortgage with an APR of 5.5%. How much of…

A: The interest amount can be computed using the beginning loan balance, the monthly interest rate, and…

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.