Question
In: Finance
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?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are planning to buy a house today. The house costs $350,000. You have $50,000 in...
You are planning to buy a house today. The house costs $350,000.
You have $50,000 in cash that you can use as a down payment on the
house, but you need to borrow the rest of the purchase price. The
bank is offering a 30-year mortgage that requires annual payments
and has an EAR of 5% per year. What will be your annual mortgage
payment?
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You looking to buy your first house. The cost of the house is
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Based upon this information:
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C. What must your annual salary be in order...
You want to buy a new house. Your options are a tradition house for $350,000 and...
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Which house would be the better option if both homes lose 2% of
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: Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in...
: Mortgage Loan Analysis: A resident in
Victoria is planning to buy a new house in March 2018. The sale
price of the house is $336,000. He plans to pay 20% down payments
and borrow additional 80% from Wells Fargo with a 30-year, 4.375%
fixed-rate mortgage loan. He is expected to pay an equal MONTHLY
payment starting from April 2018 for a total of 30 years.
(1) Calculate the required monthly
mortgage payment for Mr. Davidson.
(2) Construct the 2018~2047...
Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March...
Mortgage Loan Analysis: A resident in Victoria
is planning to buy a new house in March 2018. The sale price of the
house is $336,000. He plans to pay 20% down payments and borrow
additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate
mortgage loan. He is expected to pay an equal MONTHLY payment
starting from April 2018 for a total of 30 years.
(1) Calculate the required monthly
mortgage payment for Mr. Davidson.
(2) Construct the 2018~2047
amortization...
Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March...
Mortgage Loan Analysis: A resident in Victoria
is planning to buy a new house in March 2018. The sale price of the
house is $336,000. He plans to pay 20% down payments and borrow
additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate
mortgage loan. He is expected to pay an equal MONTHLY payment
starting from April 2018 for a total of 30 years.
(1) Calculate the required monthly
mortgage payment for Mr. Davidson.
(2) Construct the 2018~2047
amortization...
You are looking for a $312,598 mortgage to buy a house. The mortgage has a 7...
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Round your answer to 2 decimal places. (For example 2.437 =
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You would like to buy a house that costs $ 350,000. You have $ 50,000 in...
You would like to buy a house that costs $ 350,000. You have $
50,000 in cash that you can put down on the house, but you need to
borrow the rest of the purchase price. The bank is offering you a
30-year mortgage that requires annual payments and has an interest
rate of 7 % per year. You can afford to pay only $ 23,500 per year.
The bank agrees to allow you to pay this amount each year,...
You would like to buy a house that costs $ 350,000. You have $ 50,000 in...
You would like to buy a house that costs $ 350,000. You have $
50,000 in cash that you can put down on the house, but you need to
borrow the rest of the purchase price. The bank is offering a
30-year mortgage that requires annual payments and has an interest
rate of 7 % per year. You can afford to pay only $ 22,970 per year.
The bank agrees to allow you to pay this amount each year, yet...
You would like to buy a house that costs $ 350,000 . You have $ 50,000...
You would like to buy a house that costs
$ 350,000
.
You have
$ 50,000
in cash that you can put down on the house, but you need to
borrow the rest of the purchase price. The bank is offering a
30-year mortgage that requires annual payments and has an interest
rate of
7 %
per year. You can afford to pay only
$ 23,500
per year. The bank agrees to allow you to pay this amount each
year,...
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