You can afford to pay up to $2000 in payments every month for housing and have...

You can afford to pay up to $2000 in payments every month for housing and have $80,000 in savings (you don't anticipate and increase in income/savings). Which of the following mortgages would allow you to buy the most expensive property?

A 25 year FRM with 2.5% contract interest rate and .9 LTV.
		A 30 year fully amortizing FRM with 4.2% contract interest rate and .85 LTV.
		A 30 year FRM with 4.2% contract interest rate, .9 LTV and a balloon payment of $80,000 at the end of the 5th year.
		A 30 year mortgage with an interest only period of 5 years at a fixed contract rate 3% and 0.95 LTV.

Expert Solution

Solution:

25 year FRM with 2.5% interest:

Nper Number of months of 300 (25*12)

Pmt Payment per month $2,000

Rate Interest Rate per month 0.00208

jeff jeffy answered 1 year ago

You can afford payments of $700 per month for the purchase of a house.

You can afford payments of $700 per month for the purchase of a house.a) What is the largest amount you can finance for this house at 3.2% APR for 30 years? (Round to the nearest dollar.) b) How much total will you pay the finance company at the end of the 30 years for this house if you are paying $700 per month for thirty years? c) Now you are curious what the payments would be if you financed the same amount...

is it cheaper to pay $2000 per month for campus housing or to purchase a house...

is it cheaper to pay $2000 per month for campus housing or to purchase a house near campus for $100000 assuming that you are eligible for a 4% APR 30 year fixed rate HUD mortgage loan with 3 % down payment? Show your work.

8) You can afford to pay $375 monthly car payments. Assume an annual interest rate of...

8) You can afford to pay $375 monthly car payments. Assume an annual interest rate of 6%, and assume 60 monthly payments. You can afford to put down $3,000. Can you afford to buy a car that costs $30,000?

10. Bob can afford car payments of $365 per month for 5 years. If the annual...

10. Bob can afford car payments of $365 per month for 5 years. If the annual interest rate is 4.9%, how much money can he afford to borrow now? A) $7,026,73 B) $15,880.60 C) $19,338.64 D) $19,819.16 E) $21,247.83

1)Todd can afford to pay $390 per month for the next 7 years in order to...

1)Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The interest rate is 6.8 percent compounded monthly. What is the most he can afford to pay for a new car today? 2)Bob has been investing $7,500 in stock at the end of every year for the past 8 years. If the account is currently worth $93,400, what was his annual return on this investment? 3)You plan to save $390...

You plan to buy ahouse and you can afford to pay a monthly mortgage of...

You plan to buy a house and you can afford to pay a monthly mortgage of $801 over 30 years. The bank has offered you a 3.34% interest rate, compounded monthly.How much you can afford to borrow for the house?Please round your answer to the second decimal without a dollar sign. E.g. 1234.56

You are looking to buy a car. You can afford $650 in monthly payments for five...

You are looking to buy a car. You can afford $650 in monthly payments for five years. In addition to the loan, you can make a $750 down payment. If interest rates are 8 percent APR, what price of car can you afford (loan plus down payment)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

1. You wish to save up to $135,000 so you can afford to deposit for a...

1. You wish to save up to $135,000 so you can afford to deposit for a house. You plan to set aside $900 at the start of each fortnight. At the moment, your bank is paying interest at a rate of 3.5% p.a. How many years will it take to reach your target deposit amount? Express your answer in years, to four decimal places (do not type the text ‘years’ in your answer). Please include the workings and the formula.

You want to get a mortgage, but can only afford to pay $1200 per quarter.

You want to get a mortgage, but can only afford to pay $1200 per quarter. How much can you borrow, if the interest rate is 5% annually for a 30 year mortgage?

You can pay $91 per month, starting next month, for the next 5 years to have...

You can pay $91 per month, starting next month, for the next 5 years to have a lawn mowing service. Alternatively, you can purchase a riding lawn mower and pay $506 today and mow your own lawn for 5 years, starting next month. If you decide to mow your own lawn, how much do you save in PV terms if your investments earn 3.31% APR, compounded monthly? Note: If you would lose money, make your answer with a negative sign...

Question