The Potters want to buy a small cottage costing $120,000 with annual insurance and taxes of $740 and $2200,respectively. They have saved $15,000 for a down payment, and they can get a 6%, 25-year mortgage from a bank.They are qualified for a home loan as long as the total monthly payment does not exceed $1000. Are they qualified?Click the icon to view the Real Estate Amortization TableSelect the correct choice below and fill in the answer box to complete your choice.(Round to the nearest cent as needed.)OA. No, because the total monthly payment is $OB. Yes, because the total monthly payment is $Submit test0maonmoCHEOpADDQues The Potters want to buy a small cottage costing $120,000 with annual insurance and taxes of $740 and $2200,respectively. They have saved $15,000 for a down payment, and they can get a 6%, 25-year mortgage from a bank.They are qualified for a home loan as long as the total monthly payment does not exceed $1000. Are they qualified?Click the icon to view the Real Estate Amortization TableSelect the correct choice below and fill in the answer box to complete your choice.(Round to the nearest cent as needed.)OA. No, because the total monthly payment is $OB. Yes, because the total monthly payment is $Submit test0maonmoCHEOpADDQues

Here, we will calculate monthly payment which includes four parts : Principal , loan interest ,…

Answered: The Potters want to buy a small cottage…

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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A couple has decided to purchase a $180000 house using a down payment of $20000. They can amortize the balance at 7% over 20 years. a) What is their monthly payment? Answer = $ 1240.48 b) What is the total interest paid? Answer = $ 137714.79 %3D c) What is the equity after 5 years? Answer = $ 208983.88 d) What is the equity after 15 years? Answer = $
You have been shopping for a new home. You have the choice of financing for your $300,000. You can choose either a 4.5% 30 year loan or a 5% 15 year loan. A) Assuming you take out the mortgage at age 30 - prepare the amortization schedule for each situation. B) Highlight the payment period when the interest flips on the 15 year note? On the 30? C) At age 45 when you pay off the 15 year mortgage, you decide to invest your previous monthly mortgage payment in a mutual fund earning 6% annually. What is the value of this investment at age 62 (17 years later)?
Assume a 20-year, 8%, monthly amortizing, $4,000,000 mortgage on a residential property that was purchased for $5,000,000. Net operating income for Year 1 is $400,000. You can easily do these problems in Excel, and some with an online mortgage calculator, but you'll need to be able to do them using your calculator for Exam 4, so you might want to practice. For all answers, round to the nearest dollar (e.g., 423,444). See inclass 11/14/23 answers (page 5 for calculator instructions). What is the total mortgage payment in Year 1 (not the monthly amount)? What is the total amount paid in interest in Year 1? What is the mortgage balance at the end of Year 1? What is the annual depreciation amount? What would be the Year 1 pre-tax cash flow, taking the answers above into account? Assuming a 20% tax rate, what would be the taxes paid for Year 1? Assuming the foregoing information, what would be the after-tax cash flow for Year 1?
Maria and John have been renting a small apartment but decide to purchase a house. The one they have found has a selling price of $300,000. They will make a 20% down payment. If the interest is 3.125% with a 30-year mortgage: what is the total interest, show the work
Julie and Rex Parker plan to buy a $310,000 home, paying 20% downpayment and financing the balance at 4% for 30 years. The taxes are $6000 per year, with annual insurance costing $650 per year. Find the monthly payment (including taxes and insurance). Use the real estate amortization table to find the monthly payment.
Don't use Excel. Do It correctly.
Thankyou for answering the first two parts can you please give the solution for subpart c and d
The Jacksons are considering selling their current residence, buying a small home near Avery’s parents for $220,000 with a $100,000 30-year mortgage at 3.5%, and investing the net proceeds in their retirement accounts and education accounts. They assume they will incur 2% in transaction costs for the purchase and 6% for the sale. They have asked you the following: What will be their payment (principal and interest only) on their new home? How much will they be able to invest in their retirement accounts and education accounts after selling the old house and buying the new house? If the Jacksons purchase the new house one year from today, what will be the balance on their mortgage when they retire? What is the income tax consequence of their sale and purchase strategy?
1. You purchased two condos for $100,000 cash down, with loan and insurance payments of $1,500 3 month for the next 10 years. Your association fees are $150 amonth. You plan to rent out one of the condos to cover 80% of your housing expenses. What rent amount do you need to charge your tenant?
You plan to purchase a house for $295000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. Your bank offers you the following two options for payment. Option 1: Mortgage rate of 5.35 percent and 1 point. Option 2: Mortgage rate of 5.25 percent and 2 points. Which option should you choose?
John and Judy Jacobson have purchased a house for $450,000. They are putting 20% or $90,000 down payment and just signed a 30 year, 4% loan for the remainder price of the house ($360,000) to buy their house. What is this couple's monthly mortgage payment? Prepare a loan amortization schedule for the Jacobson for the first 2 months. Loan = 450,000 – 90,000 = $360,000 Terms: 30 years @ 4%
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