Question 11The cost of a home you want to purchase is $250,000.00. To qualify for a mortgage, your lender wants a20% down payment. Your mortgage interest rate is 7% for 20 years and you have to pay 3 points.A. How much money do you need for the down payment?for the down payment.I need< >B. How much will your mortgage be?My mortgage amount will beC. How much will you have to pay for the points?I will have to payD. What is the monthly payment?My payment will beE. By the end of the loan what will be the total of all your payments?By the end of the loan, the total of all my payment will beF. What is the total interest you will have paid on your mortgage by the end of the loan?I will have paidin interest by the end of the loan. HintCheck Answerfor the 3 points. Hinta month. HintQuestion Help: Video 1 Video 2 Message instructor

Monthly payment refers to the amount that is paid at every month for the repayment of loan amount…

Answered: The cost of a home you want to purchase…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You want to buy a house that costs $290,000. You will make a down payment equal to 10 percent of the price of the house and finance the remainder with a loan that has an APR of 5.51 percent compounded monthly. If the loan is for 20 years, what are your monthly mortgage payments? Group of answer choices $1,736.96 $1,886.70 $1,821.54 $1,796.86 $1,788.65
You can afford monthly payments of $700. If current mortgage rates are 2.85% 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.) How much can you afford to borrow? (Round to the nearest dollar as needed.)
You plan to purchase a $400,000 house using either a 25-year mortgage obtained from your local savings bank with a rate of 8.40 percent, or a 10-year mortgage with a rate of 7.65 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid? b. Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. b. Interest under 10-year mortgage Interest under 25-year mortgage Difference in interest paid Monthly payment under 10-year mortgage Monthly payment under 25-year mortgage Difference in monthly payment
A small company produces two products, x and y. Product x requires 1 hour of labour and 6 tons of raw materials, whereas each unit of product y requires2 hours of labour and 5 tons of raw material. The number of hours available each week is 40 and the available raw materials each week is 150 tons. If the contribution to profit is £2 per unit of product x and £3 per unit of y, determine the weekly production mix that will maximize profits.
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the price of a house is $400,000. Then, you make a down payment of $130,000 and take a 30-year mortgage for the balance. (a) what is your down payment? (b) what is your mortgage ? (c) what is the total interest charged over the life of the loan if your monthly payment is 1350 dollars?
Suppose you are interested in taking an FHA mortgage loan for $250,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully-amortizing mortgage loan is 5% and the term is 30 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP? A. $2,500.00B. $1,119.41C. $159.67D. $13.42
You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.9% interest for the rest. The bank will charge 3 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? c) What will be the amount charged for 3 points? *1 point is 1 % of the mortgage amount d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here Question Help: D Video Message instructor %24
You got a $500,000 mortgage for your new home. This is a 30- year fixed rate constant amortization mortgage with the rate at 8.00 %. You can pay 1.5 point to lower your mortgage rate to 7%. How long should you keep the house to make the point payment break even?
You purchase a house for $1.3 million and take a mortgage for $1.05 million which will be amortized over 30 years. Your mortgage interest rate is fixed at 6% compounded monthly for a 5-year term and you will be making monthly payments. How much do you still owe at the end of the 5-year term (within $1000)? Use the method that calculates your mortgage balance based on the payments you have already made (as opposed to the payments you have remaining). OPPO A79 5G Rathod Kishan
I can afford a $1500 per month mortgage payment. I found a 30 year loan at 6% interest. How big of a loan can I afford, how much total money will I pay the loan company, and how much of that money is interest?

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