Question
In: Finance
You are saving for the down payment on a house. The houses in the area you...
You are saving for the down payment on a house. The houses in the area you prefer have an average selling price of $450,000 and you need a 10% down payment to ensure your mortgage payments are not too high. You have $30,000 saved that you can invest today at 6.5% (annual compounding).
a) How long before you will have enough for the down payment saved?
b) You want to buy the house sooner. In addition to the $30,000 saved to date, how much would you need to invest each month (into the same investment) in order to have enough for the down payment in 2 years?
c) What would your payments be for part (b) if you made them at the beginning of the month instead of the end?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You are ready to buy a house and you have $50,000 for a down payment and...
You are ready to buy a house and you have $50,000 for a down
payment and closing costs. Closing costs are estimated to be 2.5%
of the loan value. You have an annual salary of
$200,000. The bank is willing to allow your housing costs –
mortgage, property tax and homeowners insurance to be equal to 28%
of your monthly income. You have estimated that property tax will
be $1,000/month and homeowner’s insurance will be $100/month. The
interest rate on...
You are ready to buy a house and you have $50,000 for a down payment and...
You are ready to buy a house and you have $50,000 for a down
payment and closing costs. Closing costs are estimated to be 2.5%
of the loan value. You have an annual salary of
$200,000. The bank is willing to allow your housing costs –
mortgage, property tax and homeowners insurance to be equal to 28%
of your monthly income. You have estimated that property tax will
be $1,000/month and homeowner’s insurance will be $100/month. The
interest rate on...
You are ready to buy a house, and you have $25,000 for a down payment and...
You are ready to buy a house, and you have $25,000 for a down
payment and closing costs. Closing costs are estimated to be 4% of
the loan value. You have an annual salary of $48,000 (monthly
income $4000) , and the bank is willing to allow your monthly
mortgage payment to be equal to 25% of your monthly income. The
interest rate on the loan is 7.2% per year with monthly compounding
(.6% per month) for a 30-year fixed...
You are ready to buy a house and you have $50,000 for a down payment and...
You are ready to buy a house and you have $50,000 for a down
payment and closing costs. Closing costs are estimated to be 2.5%
of the loan value. You have an annual salary of
$200,000. The bank is willing to allow your housing costs –
mortgage, property tax and homeowners insurance to be equal to 28%
of your monthly income. You have estimated that property tax will
be $1,000/month and homeowner’s insurance will be $100/month. The
interest rate on...
Suppose you want to accumulate $9,365.60 for a down payment for a house. You will deposit...
Suppose you want to accumulate $9,365.60 for a down payment for
a house. You will deposit $400 at the ending of every 2 months in
an account that credits interest every 2 months at the rate of 18%
per annum. How long will it take you to achieve your goal?
if you are buying a house valued at $210,000 with 10% down payment. You will borrow...
if
you are buying a house valued at $210,000 with 10% down payment.
You will borrow the remaininf 90% of the purchase prices at 6% APR
and the loan will be paid off in 30 years, how much do you still
owe two months from now?
You would like to buy a house and will need a down payment of $19,367 in...
You would like to buy a house and will need a down payment of
$19,367 in 8 months. How much would you have to invest, each month,
starting next month, for 8 months to exactly pay for the down
payment if your investments earn 2.58% APR compounded monthly?
You would like to buy a house and will need a down payment of $18,119 in...
You would like to buy
a house and will need a down payment of $18,119 in 6 months.
How much would you
have to invest, each month, starting next month, for 6 months to
exactly pay for the down payment if your investments earn 3.7% APR
compounded monthly?
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...
You are planning to buy a house in New Jersey. You put a 20% down payment,...
You are planning to buy a house in New Jersey. You put a 20%
down payment, and 15-year mortgage rates are at 4.2% -Price of the
house is $400,000.
a. Calculate the monthly payments.
b- Calculate the 1st month interest payment.
c-Calculate the 1st month principal payments
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