Suppose you want to purchase a house. Your take-home pay is $4270 per month, and you wish to stay within the recommended guidelines for mortgage amounts by only spending 1/4 of your take-home pay on a house payment. You have $18,500 saved for a down payment and you can get an APR from your bank of 5.7%, compounded monthly. What is the total cost of a house you could afford with a 3030-year mortgage? Round your answer to the nearest cent, if necessary.

Q: You want to buy a house that costs $100,000. You have $10,000 for a down payment, but your credit is…

A: Mortgage is long-term amortized loan which is used to buy fixed assets, generally houses. Mortgages…

Q: alternative calculate 1) The payment cost 2) Total cost over the term of the mortgage 3) Total…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: ou want to buy a home but not take out a mortgage. You want to buy it outright when you are able to…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

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: 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: You are borrowing $250,000 to buy a house, using a standard, 30-year mortgage. Your mortgage lender…

A: A mortgage is a covered loan taken out to purchase a property with the property itself acting as…

Q: A young couple decide to take advantage the current first-time home buyer credit and buy a new…

A: A mortgage loan is generally taken to purchase or maintain real estate. The borrower pays the lender…

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: You are considering buying a house. The home is currently listed for $750,000. Terms for the loan…

A: To calculate the monthly mortgage payment, use the formula for a fixed-rate mortgage:Where:M =…

Q: do you use APR and EAR in finance calculations? I have a question here and unsure how to solve it. I…

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

Q: Suppose you take out a 30-year mortgage for a house that costs 5490, 236. Assume the following: The…

A: Here, Cost of House $         5,490,236.00Minimum Down Payment18%Annual Interest Rate3.60%Annual…

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: You are considering refinancing your home’s 30 year mortgage at a lower interest rate.  Your…

A: When the interest rate on loan drops, borrowers tend to refinance their loan becuase in such cases,…

Q: You have saved $14000 for a down payment on a house. Your bank requires a minimum down payment of…

A: A down payment is a sum of money that the borrower contributes up ahead towards the cost of a loan…

Q: The McDaniel family is purchasing a home, and their mortgage. The home costs $156,000 and they have…

A: First we need to use loanbsp;loan amotorization formula below to calculate monthly payment.  where…

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: You are considering the purchase of a condominium to use as a rental property. You estimate that you…

A: Mortgage A mortgage is an agreement between the lender and the borrower in which the lender lent…

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 are planning to purchase a house that will require a mortgage of $400,000.  You find 2 mortgage…

A: The company is considering the value of mortgage for the purpose of financing the assets of the…

Q: Person A has a take home pay of 3980 and wishes to spend only 1/4 of this pay on a monthly house…

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

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: 1. According to Zillow, the median home price in New Jersey last year was approximately $450,000. To…

A: Home price = $450,000Down payment = 20%Interest rate on 30-year mortgage = 6.25%To find: 1. savings…

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: Suppose you have budgeted $ 950 a month towards a mortgage. If you are offered a 30 year mortgage at…

A: Present value of annuity formula is applicable to find the mortgage loan amount for given mortgage…

Q: A young married couple decide to take advantage the current first-time home buyer credit and buy a…

A: The maximum amount that can be borrowed is the present value of annuity.

Q: A homeowner is looking to buy a home in Marvin Gardens. The most he can afford to pay in total is…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

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…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.