Question

Calculate how much you can afford for an insurance company if you buy insurance coverages from that company every time you need them for the rest of your life. What factors need to be considered in order to Appreciate the value you offer to that company?

Answer 1

enough money for a 10% down payment and other clos- ing costs. Thus the bank is offering a loan at a higher rate of 5.15% and requiring private mort- gage insurance, which costs 1% of the loan amount each year. Contributed by Kate Abel, Stevens Insti- fute of Technology (a) If the maximum debt-to-income ratio (total monthly debt divided by after-tax monthly income) is still 43%, can the couple afford to purchase the home? (b) If the couple lives in the house for 30 years, what is the total amount paid for the house, including down payment, principal, interest, and private mortgage