Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 5, Problem 3FPE
Summary Introduction
To discuss: The alternative whether to buy or rent.
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Your friend is currently paying $734 in rent monthly in Fort Wayne and would rather apply the payment toward purchasing a home. If she can get a 30 year mortgage at 4.67% APR using her current payment amount, how much could she borrow? What could you type into Excel to calculate this value?
Michelle Duncan wants to know what price home she can afford. Her annual gross income is $49,800. She owes $840 per month on other debts and expects her property taxes and homeowners insurance to cost $310 per month. She knows she can get an 9.50%, 30-year mortgage so her mortgage payment factor is 8.41. She expects to make a 25% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest dollar amount.)
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Chapter 5 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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