Principal and interest payments for a certain mortgage rate areestimated at $12 per $1000 of...

Principal and interest payments for a certain mortgage rate are estimated at $12 per $1000 of loan amount. if the property is listed at $54,000 and the buyer makes a full-price offer, what would the down payment be if the buy only wanted to spend $450 per month for principal and interest payments. Answer is 16,500, i need help knowing what to do and what everything means please, thanks. ( dont have the interest rate and loan term, not given).

Solutions

Expert Solution

- Property Listed Price = $54,000

Equal Monthly Mortgage Payment is $12 per $1000 of Loan amount

As, you can afford to pay equal monthly payment of $450

Loan Amount based on $12 per $1000 of Loan amount = (Monthly Loan Payment/Basic monthly Payment)*basic Loan amount

= ($450/$12)*$1000

Loan Amount = $37500

Amount of Down payment = Property Listed Price - Loan Amount =$54,000 - $37500

Amount of Down payment = $16,500

jeff jeffy answered 2 years ago

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