You are going to purchase a house which costs $300,000. Your annual income is currently $60,000....

You are going to purchase a house which costs $300,000. Your annual income is currently $60,000. The bank you are going to get the mortgage from uses a 28% qualifying rate (a maximum of 28% of your gross monthly income can go to your monthly payment). How much will you need to put down in order to buy this house? Use the following parameters:

 30 year mortgage

 4.7% annual interest rate

Expert Solution

Mortgage eligibility = 0.28*60000 = 16800

Monthly mortgage payment = 16800 / 12 = 1400

t = 30*12 = 360 months

i = 4.7% / 12 = 0.391667% per month

Loan amount = 1400*(P/A,0.391667%,360)

= 1400*((1 + 0.00391667)^360-1)/(0.00391667*(1 + 0.00391667)^360)

= 1400*((1.00391667)^360-1)/(0.00391667*(1.00391667)^360)

= 1400*192.8126948

= 269937.77

Down payment required = 300000 - 269937.77 = 30062.23 ~ 30062

Rahul Sunny answered 2 years ago

If you were going to purchase a house with your significant other but you do have...

If you were going to purchase a house with your significant other but you do have children, would you elect joint tenants or tenants in common, and why would you pick that type of concurrent ownership? Would your answer change if your significant other was not the father of your children? Explain.

Jim has an annual income of $300,000. Jim is looking to buy a house with monthly...

Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowner’s insurance of $70. Jim has $178 in monthly student loan payments. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Both limits must be satisfied. Apple bank is offering a fully amortizing 30 year FRM at an annual rate of 4.5%, with monthly payments, compounded monthly....

You plan to purchase a $300,000 house using a 15-year mortgage obtained from your bank. The...

You plan to purchase a $300,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 4.70 percent. You will make a down payment of 25 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the mortgage. How much total interest is paid on this mortgage?

You and your spouse are considering purchasing your first new house. The house price is $300,000....

You and your spouse are considering purchasing your first new house. The house price is $300,000. You will make 10% down payment. The remaining balance can be financed with a 30 year mortgage loan with an annual interest of 6%. A. What is the monthly mortgage payments? B. How much do you need if you are to pay off the loan after 5 years (right after the 60th payment)? C. How much interest (in $) will you save from paying...

Let assume that you are going to purchase a house you know that the more space...

Let assume that you are going to purchase a house you know that the more space you have the more the house is going to cost. You decide to collect some data. square feet. Price in kilo dollars 1400. 200 1900. 245 1900. 260 2100. 300 2250. 310 1450. 190 2300. 400 3100. 525 Simple linear regression: regression between one independent variable and a single independent variable. We can say the data has a positive correlation but what does that...

Your house is worth $400,000 and you have $300,000 in a savingsaccount. There is a...

Your house is worth $400,000 and you have $300,000 in a savings account. There is a 1 percent chance of a fire in your house. If the fire occurs, there will be $300,000 in damages to your house.a. Suppose you do not have fire insurance. If the fire occurs, you will have to pay $300,000 to repair your house. What is the expected value of your wealth (including both the value of your home and your savings account) at the...

For a nice house for $300,000 (inclusive of closing costs) that you have selected, you want...

For a nice house for $300,000 (inclusive of closing costs) that you have selected, you want to take on a 30-year mortgage loan. The current rate is 3.75% fixed with payments at the start of each month. Your calculations show that you would be paying ($Answer (to the nearest $) in total interest cost during the mortgage period.

You are looking to purchase your first home and have picked one out. The house costs...

You are looking to purchase your first home and have picked one out. The house costs $287,000.00, and you saved up 8% in cash and you will need to get a loan/mortgage for the remainder of the purchase price. You also need to get private mortgage insurance, which will cover 25% of your loan amount in the event of default. The PMI involves a 3.5% of loan premium due at closing, which will be added to the loan balance. The...

You purchase a house that costs 800000TL. For this you take out a loan from a...

You purchase a house that costs 800000TL. For this you take out a loan from a bank for 25 years at 8.8% interest. You will pay your debt by making equal monthly payments. After 15 years the interest rates have dropped. Another bank offers you 7.5% interest. You decide to take out a second loan for the next 10 years, which will be paid monthly to this new bank and you pay off your total debt to the first bank....

Q. Anne sells a rental house for $300,000 (adjusted basis of $255,000). During her ownership, $60,000...

Q. Anne sells a rental house for $300,000 (adjusted basis of $255,000). During her ownership, $60,000 of losses have been suspended under the passive activity loss rules. Determine the tax treatment to Anne on the disposition of the property.

Question