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Buy a 3,000 SF house today for $240/SF (per square foot of living area). Down payment:...

Buy a 3,000 SF house today for $240/SF (per square foot of living area). Down payment: 30%. Annual rate of interest: 5.00%; monthly payments, fully amortized (i.e. a typical home loan) on a 30 year term.

Assume that Property Taxes and Insurance are 1.2% of the purchase price, per year. How much, per month, do you need to cover the property tax and insurance? How much per month is the total of principal, interest, taxes, and insurance (PITI)? After 36 months you refinance and payoff the old loan. How much is the loan payoff amount?

Solutions

Expert Solution

After 36 Months,

Payoff The Old Loan is $ 4,82,532 (4,80,532 + 2002)

Which include ( Remaining Principal + Interest of One Month)

Let we have taken A loan Since January, 2020 and Pay EMI upto December, 2049.

The Data of (PITI) Principal, Interest, Taxes and Insurance of First Three Year are below:

jeff jeffy answered 1 year ago
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