Suppose your gross monthly income is $5,800 and your current monthly payments are $425. If the bank will allow you to pay up to 36 % of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65 % ? (Round your answer to the nearest cent.)

Suppose your gross monthly income is $5,800 and your current monthly payments are $425. If the bank will allow you to pay up to 36 % of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65 % ? (Round your answer to the nearest cent.)

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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Similar questions

(a) Find the monthly mortgage payment on a $170000 15-year mortgage if the interest rate on the loan is 3.81%. (b) How much will you pay in interest over the life of the loan if you pay the minimum monthly payment each month?
You are looking at a one-year loan of $20,000. The interest rate is quoted as 10 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 10 percent interest. What rate would you actually be paying here? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. Interest rate 12:00 %
Suppose you have borrowed 72,000 as a mortgage loan on your house. The interest rate is 5%. The bank has calculated the monthly payment to be $515.83. How long will it take you to pay the loan?
Consider a 30-year fixed-rate home loan of $565,500 with an interest rate of 4.25%.What is the total amount of interest paid? (Round your answer to the nearest cent.)
Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 4.34% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.)
You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 6% interest.a) How big of a loan can you afford?$b) How much total money will you pay the loan company?$c) How much of that money is interest?
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.
You borrow $155,000; the annual loan payments are $12, 490.89 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. How do i do this on a finance calculator (BA II Plus)
Assume that a broker agent introduces you to a local bank, and that bank offers you their lowest interest rate at 3.25% APR, with a 10-year fixed interest rate or 20-year fixed interest rate. 1) If you want a 10-year, fixed mortgage loan, find the monthly mortgage payment for a house that you will borrow $500,000 with no down payment. 2) Determine the total amount paid over the full term of the loan. 3) How much interest will be paid on the loan over the 10 years?
Your local loan shark offers weekly payday loans: You can borrow $1,000 and pay back $1,050 one week later (or lose a finger or two). a. What is the effective annual rate on the loan? b.
You can afford monthly payments of $800. If current mortgage rates are 3.06% for a 15-year fixed rate loan, how much can you afford to borrow? If you are required to make a 20% down payment and you have the cash on hand to do it, how expensive a home can you afford? (Hint: You will need to solve the loan payment formula for P.)
If you borrow $30,000 from a bank for 7 years at an interest rate of 8.5%, how much will you owe in balloon payment at the end of the loan's term? This is a balloon loan with all payment due at the end. Round to the nearest dollar. Type your numeric answer and submit

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