Maria takes out a 30-year mortgage at 5.5% to buy a house that costs $280,00. She must have a down payment of 3% of the purchase price. How much does she need for the down payment? The downpayment is money towards the purchase price. How much money does Maria need to borrow? When she closes on the Loan, Maria is required to bring her down payment, pay a 1% loan origination fee and pay additional costs of $900. How much money does Maria need for closing costs?

Q: (a) How much does she need for the down payment? How much money does Maria need to borrow? (b) What…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: a wants to buy a home and is applying for a conventional mortgage loan. Her gross monthly income is…

A: Maximum monthly mortgages depend on the monthly expenses and other income.

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Closing cost = Remaining down payment + closing expenses + discount points

Q: Felix is purchasing a brownstone townhouse for ​$2,400,000. To obtain the​ mortgage, Felix is…

A: Given, Purchase Price of the house = $2,400,000 Down payment = 17% Mortgage period = 25 years…

Q: A couple buys a $190000 home, making a down payment of 17%. The couple finances the purchase with a…

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

Q: A woman buys a house for a ​$260,000. She pays ​$20,000 down and takes out a mortgage at 5.1​% for…

A: Purchase Price of House = pp = $260,000Down Payment = dp = $20,000Compound = Monthly = 12Interest…

Q: The Nicols are buying a house selling for ​$445,000. They pay a down payment of ​$45,000 from the…

A: Given Information: Cost of the house is $445,000 Down payment is $45,000 Mortgage term is 15 years…

Q: Brad and Sam take a 30-year mortgage for a house that costs $126,601. Assume the following:   The…

A: PITI stands for principal, interest, tax and insurance - PITI is the sum component of all four…

Q: Alan loans $3750 to Betty at a 6.2% simple interest rate. Betty agrees to repay the loan after 13…

A: Simple rate of interest is calculated by multiplying the rate with principal and adjusting the same…

Q: Rachel and Alexander Harrison need to calculate the amount they can afford to spend on their first…

A: Affordability ratio refers to the monthly expense that a person can afford out of his income.Monthly…

Q: Dagmar has a 4-year car loan at an annual interest rate of 7.5%. She has made 26 payments of…

A: Total number of payment over the entire duration of loan = Number of years×Number of months in a…

Q: Katrina has the option of an 8-year nonsubsidized student loan of $29,000 at an annual interest rate…

A: A subsidized loan refers to a loan (usually provided to students) where the loan does not accumulate…

Q: Jodi takes out a loan to buy a car for $29,000. If her monthly payment is $500 and the annual…

A: Using finance we need to find the NPER FIND NPERRATE = 8%/12PMT = 500PV =-29000FV =0 We will get…

Q: Scott & Rebecca can afford to pay $2,500.00 each month for a mortgage. Their credit union is…

A: Compound = monthly = 12 Monthly payment = p = $2500 Interest rate = r = 4.5 / 12 = 0.375% Time = t =…

Q: Ellery purchases a home with a loan of R149 000. The 30-year loan term and 7,5% interest rate apply…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: Helen plans to purchase a $394,000 house using a 15-year mortgage obtained from her local credit…

A:

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

A: Loans are paid by easy simple monthly payment which makes it easier to pay the loan and these equal…

Q: Margarita borrows R10,000 from her uncle and agrees to repay it in monthly instalments of R200. Her…

A: Loans are paid in equal monthly payments and these payments carry the payment for interest and…

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: A woman buys a house for $265,000. She pays $70,000 down and takes out a mortgage at 6.6% on the…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: he Nicols are buying a house selling for ​$435,000. They pay a down payment of ​$35,000 from the…

A: Data given: Cost of house = $435,000 Down payment= $35,000   Required: Amount of the​ mortgage= ?

Q: A couple buys $160000 home, making a down payment of 17%. The couple finances the purchase with a 15…

A: Here, Particulars Values Purchase value   $ 160,000 Down payment 17.00% Number of years…

Q: Maria takes out a 30-year fixed rate mortgage at 5% to buy a house that costs $450,000. To avoid…

A: Given: Years = 30 Fixed interest rate = 5% Cost = $450,000 Down payment = 20%

Q: Find the closing costs (in $).

A: Closing Cost: It is  settlement costs. It is the fees  which  is paid  when obtaining  loan and…

Q: Kari is purchasing a home for $260,000. The down payment is 25% and the balance will be financed…

A: Purchase price of home = $260,000 Down payment = 25%*$260,000 = $65,000 Loan amount = Price of home…

Q: what is the terminology for the lowest price listed on a stock market exchange at which an investor…

A: Stock price represents the worth of the stock. The market price, buyer price, ask price, and bid…

Q: The Nicols are buying a house selling for $245,000. They pay a down payment of $45,000 from the sale…

A: One mortgage point is equivalent to 1% of the loan. Payment of mortgage points reduces the…

Q: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed…

A: The costs expended for legal services rendered by a licensed lawyer or law firm are referred to as…

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.