Question

Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price...

Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number.) Monthly gross income $ 3,400 Down payment to be made (percent of purchase price) 10 Percent Other debt (monthly payment) $ 215 Monthly estimate for property taxes and insurance $ 255 30-year loan 7.5 Percent

what is

Affordable monthly mortgage payment
Affordable mortgage amount
Affordable home purchase
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Monthly gross Income $3,400
38% of monthly gross income ( 3,400 x 38% or 0.38) 1,292
Other debt
Monthly payment 215
Taxes and insurance 255
a Affordable monthly mortgage payment(1,292 - 215 - 255 ) $822
Monthly mortgage payment per $1000 7.5%
b Affordable mortgage amount (822/7.5%)1000 $109,600
Down payment 10%
c Affordable home purchase(109,600)/(1-10%) $121,111.111

Any doubt comment below i will explain or resolve until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Michelle Duncan wants to know her affordable home purchase price. Her annual gross income is $45,600....
Michelle Duncan wants to know her affordable home purchase price. Her annual gross income is $45,600. She has $780 per month of other debt and expects her property taxes and homeowners insurance to cost $310 per month. She knows she can get a 11.00%, 30-year mortgage so that her mortgage payment factor is $9.52. She expects to make a 10% down payment. What is Michelle's affordable home purchase price? (Round your answer to the nearest dollar amount.)
A mortgage is a loan used to purchase a home. It is usually paid back over...
A mortgage is a loan used to purchase a home. It is usually paid back over a period of 15, 20, or 30 years. The interest rate is determined by the term of the loan (the length of time to pay back the loan) and the credit rating of the person borrowing the money. Once a person signs the documents to borrow money for a home, they are presented with an amortization table or schedule for the mortgage that shows...
Duane Miller wants to know what price home he can afford. His annual gross income is...
Duane Miller wants to know what price home he can afford. His annual gross income is $49,200. He has no other debt expenses and expects property taxes and insurance to cost $320 per month. He knows he can get a 8.50%, 15 year mortgage so his mortgage payment factor is 9.85. He expects to make a 15% down payment. What is Duane's affordable home purchase price?
Using the Mortgage Payment Formula, calculate a monthly mortgage payment for a home with the price...
Using the Mortgage Payment Formula, calculate a monthly mortgage payment for a home with the price of $405,000 using pencil and paper. Your down payment is 10% of your own money apart from the loan. Calculate the total paid for your home after paying the monthly payment for 30 years factoring in the rate of 2.990%. You can use arithmetic. How much money will you pay in interest over 30 years? All Calculations must be shown.
Using the Mortgage Payment Formula, calculate a monthly mortgage payment for a home with the price...
Using the Mortgage Payment Formula, calculate a monthly mortgage payment for a home with the price of $405,000 using pencil and paper. Your down payment is 10% of your own money apart from the loan. Calculate the total paid for your home after paying the monthly payment for 15 years factoring in the rate of 2.500% and APR of 2.556%. You can use arithmetic. How much money will you pay in interest over 15 years? All Calculations must be shown.
Michelle Duncan wants to know what price home she can afford. Her annual gross income is...
Michelle Duncan wants to know what price home she can afford. Her annual gross income is $43,200. She owes $670 per month on other debts and expects her property taxes and homeowners insurance to cost $240 per month. She knows she can get an 6.00%, 30-year mortgage so her mortgage payment factor is 6.00. She expects to make a 20% down payment. What is Michelle's affordable home purchase price?
You hope to be able to purchase a home within 1-3 years after graduation. You expect...
You hope to be able to purchase a home within 1-3 years after graduation. You expect to have to save for the necessary down payment and closing costs without relying on financial help from your family or relatives. Your financial goal is to purchase a home in the $300,000 price range and have the available cash for the down payment and required closing costs for the type of mortgage financing that you select and are able to receive home mortgage...
Assume that you have found a home for sale and have agreed to a purchase price...
Assume that you have found a home for sale and have agreed to a purchase price of $254800$254800. Down Payment: Assume that you are going to make a 10%10% down payment on the house. Determine the amount of your down payment and the balance to finance. Down Payment=$Down Payment=$ Loan Amount=$Loan Amount=$ Monthly Payment: Calculate the monthly payment for a 30 year loan (rounding to the nearest cent, so rounding to two decimal places). For the 30 year loan use...
You borrow 410,000 to buy a home using a 30-year mortgage with an interest rate of...
You borrow 410,000 to buy a home using a 30-year mortgage with an interest rate of 3.75 percent and monthly payment. After making your monthly payments on time for exactly 6 years calculate your loan balance. Disregard property taxes and mortgage insurance.
You are borrowing $245,000 to purchase a home. The loan agreement requires a monthly payment based...
You are borrowing $245,000 to purchase a home. The loan agreement requires a monthly payment based upon a 4.5% quoted APR over 20 years. What is your monthly mortgage payment?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT