need to ulate the they can an annual income of $67,500 and have $37,000 available for a down payment and closing costs. The Harrisons estimate that homeowner's insuran property taxes will be $250 per month. They expect the mortgage lender to use a 30 percent (of monthly gross income) mortgage payment aff ratio, to lend at an interest rate of 6 percent on a 30-year mortgage, and to require a 10 percent down payment. Based on this information, us home affordability analysis form in Worksheet 5.3 to determine the highest-priced home the Harrisons can afford. Assume that closing costs an of the down payment. Round the answer to the nearest dollar.

need to ulate the they can an annual income of $67,500 and have $37,000 available for a down payment and closing costs. The Harrisons estimate that homeowner's insuran property taxes will be $250 per month. They expect the mortgage lender to use a 30 percent (of monthly gross income) mortgage payment aff ratio, to lend at an interest rate of 6 percent on a 30-year mortgage, and to require a 10 percent down payment. Based on this information, us home affordability analysis form in Worksheet 5.3 to determine the highest-priced home the Harrisons can afford. Assume that closing costs an of the down payment. Round the answer to the nearest dollar.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Fritzes are buying a house that sells for $173,000. The bank is requiring a minimum down payment of 10%. To obtain a 30-year mortgage at 11.5% interest, they must pay 2 points at the time of closing a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 10% down payment. c) Find the cost of 2 points on the mortgage. a) The required down payment is $ b) The mortgage on the property is S c) The cost of the 2 points on the mortgage is $ (Round to the nearest dollar as needed.)
A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5% APR compounded monthly with level monthly payments. There is also a 2% Origination Fee so at the very beginning, she receives 250,000*98% = 245,000. Assume she will pay the loan for 30 years following the original loan schedule. What would be the Effective Annual Rate (EAR)? Hints: 1. Monthly Payment is based on $250,000; 2. with Excel Rate function, calculate the Effective Monthly Rate (EMR), here PV is what the borrower actually receives (after deduction of 2%) 3. then EAR (1+EMR)^12-1 O 5.30% O 5% = O 4.70% O Not enough information
A homeowner is looking to buy a home in Marvin Gardens. The most he can afford to pay in total is $3,080 per month. Yearly property taxes will be about $12,000 (escrowed monthly) and insurance is $187 per month. There are no other costs. If mortgage rates are 5.48% for a 30-year fixed-rate mortgage, how large can his mortgage be? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
The Singhs have purchased a S550, 000 home with a 20 - year, S400, 000 mortgage. Their mortgage rate is 5.5 % , compounded semi - annually, and paymentsare monthly. If they add the CMHC Mortgage Loan Insurance Cost to their mortgage, by how much will it increase their monthly payment? Round to thenearest dollar. See below:Loan - value ratio and standard premiumsLoan - Value Ratio Standard PremiumUp to and including 65 % 0.60%Up to and including 75% 1.70%Up to and including 80 % 2.40%Up to and including 85 % 2.80%
You need to borrow $750,000 to purchase a new house. JRE bank will loan you the money at an APR of 4.3% (monthly compounding) and a 15 year term (i.e. 180 monthly payments in total). After making exactly 27 payments, what is the total amount of interest you will have paid (rounded to the nearest dollar)? The total amount of interest is closest to: A. $63,309 OB. $84,140 c. $68,709 OD. $70,734 ...
That calculated monthly expense should include all housing costs (such as insurance, property taxes, etc), let’s estimate this means they would have around $950 a month for their mortgage payment and they have poor credit so qualify for a loan with an APR of 5.481%. What size 30 year home mortgage loan could they pay off with a monthly payment of $950?
If you buy a home with less than 20% down, you will pay an additional monthly fee, PMI (private mortgage insurance), until you reach 20% equity. Keep track of when you reach 20% equity so you can request to have your PMI removed. Ken Buckmiller’s home recently appraised at $290,000. His mortgage was for $275,000 at 5% for 30 years with PMI of $229.17 per month. What is his monthly payment plus PMI? His mortgage balance is currently $222,990. Has he reached 20% equity? (Use Table 15.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)
A family needs to take out a 15-year home mortgage loan of $170,000 through a local bank. Annual interest rates for 15-year mortgages at the bank are 3.5% compounded monthly. (a) Compute the family's monthly mortgage payment under this loan. (b) How much interest will the family pay over the life of the loan?
The Fritzes are buying a house that sells for $107,000.The bank is requiring a minimum down payment of 20%.To obtain a 40-year mortgage at 9.5% interest, they must pay 4 points at the time of closing. a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 20% down payment. c) Find the cost of 4 points on the mortgage. a) The required down payment is $ enter your response here.
The Nguyens are thinking of buying a home for $121,000. A potential lender advertises an 80%, thirty-year simple interest amortized loan at 8 and 1/4% interest, with an APR of 9.23%. Use the APR to approximate the fees included in the finance charge. (Round your answer to the nearest cent.)
You purchase a $255,000 house and you pay 20 percent down. You obtain a fixed-rate mortgage where the annual interest rate is 5.85 percent and there are 360 monthly payments. What is the monthly payment? A) $1,215.27 B) $1,203.48 C) $1,194.45 D) $1,367.22 E) $1,504.35
Assuming a 28% lender's affordability ratio, estimated monthly property taxes and insurance of P250, a 25% down payment (of the purchase price), and an annual gross income of P84,800, calculate the maximum purchase price based on monthly income. The monthly payment will occur at the end of the month and you plan to pay off the mortgage over a 30-year period at a 6.25% annual interest rate. a.P374,343b.P280,757c.P282,219d.P321,360e.None of the above

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