Question

You friend Stephen is planning to buy a house. He believes he can afford a mortgage...

You friend Stephen is planning to buy a house. He believes he can afford a mortgage payment of $3,750 per month. The current interest rate on a 30 year mortgage is 3.25% per year. What is the largest mortgage he can afford based on a 30 year loan if the lender requires a 20% downpayment? How much does he need in down payment for the most expensive house he can afford? ]

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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
A buyer can afford no more than $500 per month for mortgage payments (principal and interest)....
A buyer can afford no more than $500 per month for mortgage payments (principal and interest). The most favorable loan availabe to him requires monthly payments for 30 years at 10%. If the lender allows a maximum loan to value ration of 90%, what is the most expensive house the borrower can purchase assuming he has the necessary down payment?
A homeowner is looking to buy a home in Marvin Gardens. The most he can afford...
A homeowner is looking to buy a home in Marvin Gardens. The most he can afford to pay in total is $1,800 per month. Yearly property taxes will be about $3,000 (escrowed monthly) and insurance is $110 per month. There are no other costs. If mortgage rates are 6.25% for a 30-year fixed-rate mortgage, how large can his mortgage be? If his parents give him $20,000 for a down payment, what is the most he can pay on a house...
Estimate the maximum house value you can afford to buy. Assume the mortgage is fixed rate,...
Estimate the maximum house value you can afford to buy. Assume the mortgage is fixed rate, 30-year maturity, 80% LTV, with no points. The interest rate is quoted is 3.5% with monthly payments. The property tax rate in the city is 0.7% per year based on property value; the hazard insurance premium is 0.5% per year based on property value, and that on average you should consider $50 per month for maintenance. Determine the required monthly payment for the mortgage...
A homeowner is looking to buy a home in Marvin Gardens. The most he can afford...
A homeowner is looking to buy a home in Marvin Gardens. The most he can afford to pay in total is $1,800 per month. Yearly property taxes will be about $3,000 (escrowed monthly) and insurance is $110 per month. There are no other costs. If his parents give him $20,000 for a down payment, what is the most he can pay for a house with a 15-year mortgage if the interest rate is 5.50 percent?
You are planning to buy a house today. The house costs $400000. You have $57000 in...
You are planning to buy a house today. The house costs $400000. You have $57000 in cash that you can use as a down payment on the​ house, but you need to borrow the rest of the purchase price. The bank is offering a ​30 -year mortgage that requires annual payments and has an EAR of 8% per year. What will be your annual mortgage​ payment?
1.) You want to buy a house in Hermosa Beach CA, but you can only afford...
1.) You want to buy a house in Hermosa Beach CA, but you can only afford to make monthly payments of $7,100. The interest rate on mortgages right now is 4.25% p.a. with monthly compounding (APR), fixed for 30 years, with monthly payments. You have $155,000 saved to use as a downpayment. What is the most that you can afford to pay for a house (ignoring closing costs, property taxes, etc..)? Answer: $1,598,265.76 2.) Under the same assumptions described in...
if sally mander can afford 1100 monthly mortgage payment (30 years ) and she plans to...
if sally mander can afford 1100 monthly mortgage payment (30 years ) and she plans to put 20% down in the current mortgage rate is 7% how expensive of a house is he planning to purchase $132270 $165338 $198406 $206673
Katherine and Ryan want to purchase a new house and feel that they can afford a...
Katherine and Ryan want to purchase a new house and feel that they can afford a mortgage payment of $1000 a month for 25 years. They are able to obtain a 6% mortgage (compounded monthly), but must put down 10% of the mortgage value of the house now. Assuming that they have enough savings for the down payment, how expensive of a house can they afford? They can afford a $ house.
1)You want to buy a house and wonder what you can afford. Banks look at collateral,...
1)You want to buy a house and wonder what you can afford. Banks look at collateral, creditworthiness and capacity (ability to pay) when making loans. Assume you have sufficient down payment and credit score. Your bank has a requirement of 28% housing expense ratio and your gross annual income is $69,000. Based on those assumptions, how much can you afford to pay in total housing costs each month? 2) You are looking to purchase a new home that is listed...
Aya and Harumi would like to buy a house and their dream house costs $500,000. They...
Aya and Harumi would like to buy a house and their dream house costs $500,000. They have $50,000 saved up for a down payment but would still need to take out a mortgage loan for the remaining $450,000 and they’re not sure whether they could afford the monthly loan payments. The bank has offered them an interest rate of 4.25%, compounded monthly. How much would they have to be able to afford to pay each month in order to pay...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT