Shaun has enough money to put a 20% down payment on the new house he and...

Shaun has enough money to put a 20% down payment on the new house he and his family have picked out, but they will lose the emergency fund. Putting less than this down will increase his payments. What tradeoffs should he consider?

Expert Solution

The emergency fund is created to use it in times when the situation is critical like medical needs or any pandemic happens or recession times etc. Buying a house is not an emergency or critical situation rather it is a desire. So when it comes to need versus desire, the tradeoff should be that the emergency fund should not be used for down payment.

jeff jeffy answered 2 years ago

In order to accumulate enough money for a down payment on a house, a couple deposits...

In order to accumulate enough money for a down payment on a house, a couple deposits $472 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 3 years? Round to the nearest dollar

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000. a. Calculate the monthly payments. b- Calculate the 1st month interest payment. c-Calculate the 1st month principal payments

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000. A. Calculate the 1st month interest payments B.Calculate the 1st month principal payments C. Calculate the monthly payments. Place answer in the box below and use 2 decimals and no $ sign

In order to accumulate enough money for a down payment on a house,a couple deposits $437per...

In order to accumulate enough money for a down payment on a house,a couple deposits $437per month into an account paying 6% compounded monthly. If payments are made at the end of each period,how much money will be in the account in 6 years?

In order to accumulate enough money for a down payment on a house,a couple deposits $718per...

In order to accumulate enough money for a down payment on a house,a couple deposits $718per month into an account paying 6%compounded monthly. If payments are made at the end of each period,how much money will be in the account in 4years?(Round o the nearest dollar.)

Adam bought a house for $220000. He is making a 20% down payment and finance the...

Adam bought a house for $220000. He is making a 20% down payment and finance the rest through a mortgage loan with an interest rate of j4=5.5%j4=5.5%. Calculate the monthly payment for the following time periods: a) 20 years: $ b) 25 years: $ c) 30 years: $

"I recently bought a new house for $200,000. There was a 20% down payment, and the...

"I recently bought a new house for $200,000. There was a 20% down payment, and the rest was financed at 4.8 percent APR with monthly compounding. Monthly payments starting from next month will be $1,248.66. How many years will it take the firm to pay off this debt?" Please let me know values used in calculator or any formulas.

I recently bought a new house for $200,000. There was a 20% down payment, and the...

I recently bought a new house for $200,000. There was a 20% down payment, and the rest was financed at 4.8 percent APR with monthly compounding. Monthly payments starting from next month will be $1,248.66. How many years will it take the firm to pay off this debt?

Your friend purchases a $165,000 house. He is able to make a 20% down payment. The...

Your friend purchases a $165,000 house. He is able to make a 20% down payment. The bank will give him a 30-year loan with a 4% APR. How much interest will your friend pay over 30 years to his loan? (round to the nearest cent)

Ella purchases a new house for $400,000. She put 20% down and will finance the rest...

Ella purchases a new house for $400,000. She put 20% down and will finance the rest over 30 years at 4.5%. What is her monthly payment? Group of answer choices $1,721.35. $1,621.4 $405.34 $1,635.98.

Question

Shaun has enough money to put a 20% down payment on the new house he and...

Solutions

Expert Solution

Related Solutions

In order to accumulate enough money for a down payment on a house, a couple deposits...

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment,...

In order to accumulate enough money for a down payment on a house,a couple deposits $437per...

In order to accumulate enough money for a down payment on a house,a couple deposits $718per...

Adam bought a house for $220000. He is making a 20% down payment and finance the...

"I recently bought a new house for $200,000. There was a 20% down payment, and the...

I recently bought a new house for $200,000. There was a 20% down payment, and the...

Your friend purchases a $165,000 house. He is able to make a 20% down payment. The...

Ella purchases a new house for $400,000. She put 20% down and will finance the rest...