You would like to buy a house and are thinking about your budget. You have $50,000 in cash that you could use as a down payment. You are also willing to pay $2,000 per month for your mortgage over the next 20 years. After checking various offers, you decided that you would like to have a fixed interest mortgage, the best one that suits you is currently sold with a yearly interest rate of 11%. Please calculate the upper price ceiling for any house you might be able to purchase

Q: Explain which is the better option.

A: Information Provided: House costs = $100,000 Down payment = $25,000 Option A = 3% APR for 20 years…

Q: You are planning to purchase a house that will require a mortgage of $300,000. You find 2 mortgage…

A: In order to calculate the monthly payment for both the type of mortgage PMT Excel function is used…

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

A: Company needs to take loan for the financing of its assets. The loan could be taken in several…

Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

Q: offer 30-year mortgage that requires annual payments and has an interest rate of 5% per year. What…

A: Mortgage amount are paid by monthly payment or annual payment these are fixed periodic instalments…

Q: Suppose you found a house which comes with a price tag of $200,000. Your bank is willing to finance…

A:

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: bu want to buy a condo in Toronto that costs $511,000 and have accumulated a 20% down payment. The…

A: Cost of condo=$511000Down payment=20%Term=20 yearsInterest rate=5.60%

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: You are a loan officer trying to structure a 5/25 ARM mortgage. The interest rate in the first 5…

A: A mortgage refers to a loan used for the purchase of real estate. The loan is covered by the real…

Q: You want to buy a home in 5 years, and you think at that time you will be able to afford to buy a…

A: Monthly payment refers to an amount that is being paid at every month for the repayment of the…

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

A: The following is the excel formula used for the calculation:

Q: Please explain how to do this in Excel. Please explain how you did it and what the results mean. You…

A: Sale Price = $650,000Down Payment = 20% of Sale PriceTime Period = 30 YearsInterest Rate = 7.2%

Q: e decided to become a homeowner with the purchase of a condominium in a newly redeveloped part of…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

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: You have been shopping for a new home. You have the choice of financing for your $300,000. You can…

A: Principle amount is $300,000 We have two Choices:- 1st Choice:- Rate of interest is 4.5% Loan…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: For the calculation I have used the above given formula and got the monthly payment to be…

Q: You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…

A: The question is based on the concept of amortization of loan in equal periodic installment.by…

Q: A married couple has looked at their budget. After review, they can afford a monthly mortgage…

A: Monthly mortage payment (A)= $1,000Interest rate = 5.4% per annum with monthly…

Q: You are purchasing a home and plan to take out a 25 year mortgage loan for $300,000. The interest…

A: The correct option is option “c”.

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: nt a.)If his new home costs $136,000, what is his down payment? b.)How much is he going to borrow…

A: PMT function computes installment amount for given interest rate (RATE), no. of installments (NPER)…

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: You purchase a home costing $480,000 with a 20% down payment. After shopping around for a mortgage,…

A: Thus, Monthly Payment in option 1 is $1583.32 and in Option 2 is $1586.07

Q: You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan…

A: We will only answer the first three subparts for the remaining subparts kindly resumit the whole…

Q: You want to purchase a new condominium that costs $285,000. Your plan is to pay 30 percent down in…

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

Q: Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a…

A: Formulas that are used:-

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.