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You are planning to buy a house appraised for $350,000 and finance it through a mortgage...

You are planning to buy a house appraised for $350,000 and finance it through a mortgage of $300,000. What is the loan-to-value ratio and is it be above or below the normal cutoff set by your lender of 80 percent for a prime mortgage? Being securely employed, your take-home pay is $2,300 per month and you have no substantial other debts. Your lender has offered you a 2.5 percent, 30 year, fixed-rate mortgage. What is the amount that you will pay per month if the mortgage payments are treated as an ordinary annuity with 12 payments per year for 30 years? For the first payment, how much is interest and how much is principal? Can you afford the loan?

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jeff jeffy answered 2 years ago
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