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1. Coretta Bradley got a $75,000 mortgage loan for 15 years at 4.85%. The property taxes...

1. Coretta Bradley got a $75,000 mortgage loan for 15 years at 4.85%. The property taxes on the property are $2,060 annually and the insurance premium is $945. What is the amount of the monthly payment, including the amount put in escrow?

2. Jason Bradley’s brother is getting qualified for a VA mortgage loan. His monthly salary is $5,214. Annual property taxes on the property are $2,491 and insurance is $763. He has a car payment of $437.50 and a student loan of $325 to pay each month. The VA has a qualifying ratio of 41%. What is the maximum monthly mortgage payment allowed?

Solutions

Expert Solution

1. Monthly mortagage of the loan =PMT(rate,nper,pv) in excel =PMT(0.0485/12,15*12,75000) = $587.25

Monthly property tax = 2060/12 = 171.67

Monthly insurance premium = 945/12 = 78.75

Total monthly payment = 587.25 +78.75 +171.67 = 837.67

2. Monthly salary = $5214

Monthly property tax = 2491/12 = $207.583

Monthly insurance = 763/12 = 63.583

Monthly Car payment = 437.50

Monthly Student loan = 325

Total payments per month = 1033.666

His maximum monthly payment possible as per ratio = 0.41*5214 = 2137.74

His monthly mortatage payment allowed = 2137.74 -1033.666 =$1,104.07

His monthly mortatage payment allowed=$1,104.07

jeff jeffy answered 2 years ago
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