A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan the couple up to 70 % of their equity. The couple purchased the home 12 years ago for $179,000 . The home was financed by paying 20 % down and signing a 30-year mortgage at 8.4 % on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $215,000 . After making the 144 th payment, the couple applied to the loan company for the maximum loan. How much (to the nearest dollar) will the couple receive
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan the couple up to 70 % of their equity. The couple purchased the home 12 years ago for $179,000 . The home was financed by paying 20 % down and signing a 30-year mortgage at 8.4 % on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $215,000 . After making the 144 th payment, the couple applied to the loan company for the maximum loan. How much (to the nearest dollar) will the couple receive
Solution Summary: The author calculates the amount of cash received by the couple, who wish to borrow an amount and a loan company loans up to 70% of the equity.
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan the couple up to
70
%
of their equity. The couple purchased the home
12
years ago for
$179,000
. The home was financed by paying
20
%
down and signing a 30-year mortgage at
8.4
%
on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now
$215,000
. After making the
144
th
payment, the couple applied to the loan company for the maximum loan. How much (to the nearest dollar) will the couple receive
Mathematics with Applications In the Management, Natural, and Social Sciences (12th Edition)
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