Let’s assume instead they have great credit and qualify for a loan with an APR of 4.025%, what size home mortgage loan could they borrow that could be paid off in 30 years with these $950 monthly payments?

Q: You're going to need a home . You can afford $1400 to put to your mortgage if the loan charges 6%…

A: Future value refers to the value of current assets at some future date based on the interest…

Q: Suppose you take out a 25-year $100,000 mortgage with an APR of 6%. You make payments for 3 years…

A: When a loan's conditions, including its interest rate, payment schedule, or other terms, are…

Q: The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is…

A: compound = monthly = 12 Price of home = $600,000 Down payment = 20% Time = t = 30 * 12 = 360…

Q: You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the…

A: A mortgage is a type of loan used to purchase a property or real estate. The borrower (homebuyer)…

Q: You want to buy a house financed with a 30-year fixed-rate mortgage. The best monthly interest rate…

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

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: You'd like to purchase a house.  You're monthly take home pay is $4560. You'd like to use one fourth…

A: PMT is the periodic payment, in this case it is paid monthly.

Q: 2. That calculated monthly expense should include all housing costs (such as insurance, property…

A: (2).Here, PMT = 950  nper = 30*12 = 360Months and rate = 5.481% / 12 Hence, the size of a home…

Q: using the maximum ratios for a conventional mortgage, how big a monthly payment could one afford if…

A: Conventional Mortgage: It is  any sort of home buyer’s credit that isn't offered or secured  by a…

Q: You found your dream house. It will cost you $300000 and you will put down $45000 as a down payment.…

A: Purchase Price of House= 300,000  Down payment = 45,000  Loan Amount = Purchase Price - Down payment…

Q: 2. I decided to buy a house for $289,900. I have enough in savings to put 10% down on the house and…

A:

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: 1)  Loan Amount = 80% of 415,000 = $332,000.

Q: Fou want to buy a $221,000 home. You plan to pay 15% as a down payment, and take OL he rest. a) How…

A: Down payment is the advance cash payment that is made out of pocket for the purchase of a home and…

Q: '. If your gross income is OMR1,000 per month, what is the maximum amount that a lender will allow…

A: P = Monthly Loan amount = OMR1,000 * 28/36    = OMR777.7777778 = OMR777.78   n = 15*12     = 180…

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

A: Data given: Monthly payment (PMT)= $3,220 Rate=6.1% N=30 years   Working Note#1 Calculation of…

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: You have just found the perfect home. However, in order to buy it, you will need to take out a TRL…

A: Installment is the amount of periodic payment a borrower has to make to the lender in order to pay…

Q: You are purchasing a home and plan to take out a 25 year mortgage loan for $300,000. The interest…

A: The correct option is option “c”.

Q: maximum loan

A: Loan amount refers to the amounts which a person borrowed at any given time under the mortgage. It…

Q: You want to buy a $234,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Mortgage refers to a covered loan that is borrowed for purchasing a property. The property itself…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: You can afford a $800 per month mortgage payment. You've found a 30 year loan at 8% interest a) How…

A: Monthly payment (P) = $ 800 Period = 30  Years Number of monthly payments (n) = 30*12 = 360 Annual…

Q: You found your dream house. It will cost you $300000 and you will put down $45000 as a down payment.…

A: The question is calculation of amortization of mortgage loan at fixed monthly repayments. Formula…

Q: Will they get the home loan? You have a gross annual income of $175,000 and have been pre-approved…

A: Back-End ratio shows proportion of monthly income used to pay off debt. Back End Ratio=Monthly Debt…

Q: A house costs $185,000. You take out a mortgage loan and put 20 percent down on the house. The…

A: Loans are paid in equal monthly installments that carry the payment of interest and loan payments.

Q: You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan…

A: We will only answer the first three subparts for the remaining subparts kindly resumit the whole…

Q: Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a…

A: Formulas that are used:-

Q: (Q) You would like to purchase a home and are interested to find out how much you can borrow. When…

A: Present Value of Ordinary Annuity depicts the concept which dictates the present or today's value of…

Q: That calculated monthly expense should include all housing costs (such as insurance, property taxes,…

A: Using financial calculator, N (no. of compounding period) = 30*12 = 360 I/Y (rate per period) =…

Q: You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year…

A: The amount that you can borrow today based on your ability to pay will be the present value of all…

Q: You wish to buy a house for $170,000. You want to put down a down payment first, then mortgage the…

A: A written agreement through which a lender gets the right to take the property that is put as a…

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.