When preparing a budget to buy a new home, you should add an additional ____ percent...

When preparing a budget to buy a new home, you should add an additional ____ percent to the monthly payment on the loan for such things as homeowner's insurance, property taxes, maintenance, and upkeep.

Expert Solution

A person taking a loan should be very well prepared before he takes the decision to purchase a house. When preparing a budget for purchasing a new house, in additional to the monthly instalments, they should also add an additional 40%, to keep up with insurance, property taxes and the upkeep and maintenance of the property.

Our credit history determines if a home loan will be available to us or not. A good credit record can increase our chance of purchasing our dream home and a poor record can break our dream of buying a new house. So, proper estimation of the costs is essential.

So, the correct answer is 40%.

jeff jeffy answered 2 years ago

in social work: ● What should you think about/do when preparing to meet with a new...

in social work: ● What should you think about/do when preparing to meet with a new client? ● What skills are most relevant to the engagement and/or assessment stage of practice? ● How do we conduct assessments? What tools are used? How does assessment look different by setting, population, short-term vs. long-term work, etc. ● Does assessment have a finite start and finish? Why/why not?

Besides defending the assumptions made when preparing a budget, the preparer should be able to defend...

Besides defending the assumptions made when preparing a budget, the preparer should be able to defend the numbers in a budget. For example, if minimum wage is increasing significantly and the majority of the companies employees receive minimum wage, the company should adjust the budget to reflect that- they shouldn't just budget for an ordinary cost of living adjustment of 3%. In this example, the new law served as the basis for the increase in salaries. Provide examples of income...

You buy a new home for $500,000 on the first day of the month. You put...

You buy a new home for $500,000 on the first day of the month. You put down $50,000 and finance the rest with a mortgage at 6% annual interest compounded monthly on the last day of the month. Your monthly payments including principal and interest are 2500. Your payments are due on the first day of the month, starting next month. What is your loan balance after your third monthly payment ? explain how you got the answer !

Suppose that you wish to buy a new home that will cost you $482,472. You must...

Suppose that you wish to buy a new home that will cost you $482,472. You must put $80,000 down, and the bank offers you a 5-year 5.4% APR negative amortization loan with a payments $1,218 per month, and a balloon payment of $67,789 (your 360th payment). How much will your remaining payments be?

Suppose that you wish to buy a new home that will cost you $560,000. You must...

Suppose that you wish to buy a new home that will cost you $560,000. You must put $90,000 down, and will finance the rest at 3.6% APR, making monthly payments for 30 years at the end of each month. However, the loan is structured with a balloon payment of $100,000 in the last month. How much will your remaining monthly payments be?

Suppose that you wish to buy a new home that will cost you $467,043. You must...

Suppose that you wish to buy a new home that will cost you $467,043. You must put $80,000 down, and the bank offers you a 5-year 4.7% APR negative amortization loan with a payments $1,259 per month, and a balloon payment of $55,468 (your 360th payment). How much will your remaining payments be?

Suppose that you wish to buy a new home that will cost you $452,847. You must...

Suppose that you wish to buy a new home that will cost you $452,847. You must put $80,000 down, and the bank offers you a 5-year 5.1% APR negative amortization loan with a payments $1,258 per month, and a balloon payment of $92,233 (your 360th payment). How much will your remaining payments be?

Suppose that you wish to buy a new home that will cost you $420,000. You must...

Suppose that you wish to buy a new home that will cost you $420,000. You must put $84,000 down, and will finance the rest at 4.8% APR, making monthly payments for 30 years at the end of each month. How much of your second payment will be interest? Group of answer choices <1344 1344-1346 1346-1348 1348-1350 >1350

Suppose that you wish to buy a new home that will cost you $400,000. You must...

Suppose that you wish to buy a new home that will cost you $400,000. You must put $80,000 down, and will finance the rest at 4.8% APR, making monthly payments for 30 years at the end of each month. How much of your second payment will be interest?

Suppose that you wish to buy a new home that will cost you $421,285. You must...

Suppose that you wish to buy a new home that will cost you $421,285. You must put $82,262 down, and will finance the rest at 4.5% APR, making monthly payments for 30 years at the end of each month. However, the loan is structured with a balloon payment of $100,000 in the last month. How much will your remaining monthly payments be?

Question