Julianne Zaslow just inherited $100,000 from her great aunt Abigail. Julianne and her partner are thrilled beyond words. They have lived in their current home for just over 13 years. While the Zaslows still love their 2-bedroom home, it is now too crowded for their family of five. The Zaslows want to use part or all of the inheritance to buy their dream home; a five bedroom home two blocks from their current house. The Zaslow’s took out a 30-year mortgage loan for $275,000, with an APR of 4.25% just over 13 years ago. They have just made their 160th payment. a.) How much do the Zaslows owe on the loan of their current home, right after making the 160th payment? b.) The Zaslow’s have accepted a $375,000 offer for their current home. After the sale, how much will the Zaslows have available to be used as down payment for the new home, including the inheritance money. Assume the sale occurs immediately after the Zaslows make the 160th payment. c).Their dream home is listed for $700,000. The Zaslow’s plan to make a full listing-price offer. The Zaslow’s can finance the new home with their current bank. The bank has gi
Julianne Zaslow just inherited $100,000 from her great aunt Abigail. Julianne and her partner are thrilled beyond words. They have lived in their current home for just over 13 years. While the Zaslows still love their 2-bedroom home, it is now too crowded for their family of five. The Zaslows want to use part or all of the inheritance to buy their dream home; a five bedroom home two blocks from their current house. The Zaslow’s took out a 30-year mortgage loan for $275,000, with an APR of 4.25% just over 13 years ago. They have just made their 160th payment.
a.) How much do the Zaslows owe on the loan of their current home, right after making the 160th payment?
b.) The Zaslow’s have accepted a $375,000 offer for their current home. After the sale, how much will the Zaslows have available to be used as down payment for the new home, including the inheritance money. Assume the sale occurs immediately after the Zaslows make the 160th payment.
c).Their dream home is listed for $700,000. The Zaslow’s plan to make a full listing-price offer. The Zaslow’s can finance the new home with their current bank. The bank has given them two financing options: !
A 15-Year Mortgage with an APR of 4.75%, with a minimum 20% down payment. !
A 30-Year Mortgage with an APR of 5.75%, with a minimum 20% down payment.
What’s the monthly payment associated with each of the two mortgages?
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