Question

Housing cost: $345,000

Number of years (T) = 30

How much are the Real Estate taxes?

Rate of Interest: (R) = 4.553%

Down payment 20% of asking price

What is the Principal of the loan?

What is the Interest of the loan?

Suppose that in order to qualify for the loan, the total monthly amount paid cannot exceed 30 percent of monthly income. What is the minimum monthly income needed to qualify for the loan? What is the minimum annual income needed? This is a simplified minimum income requirement calculation, as it does not take into account other costs such as insurance or other loans or assets currently held.

Monthly Income: 5,390.00

Annual Income: 64,680.00

Answer #1

Downpayment = 0.2*$345,000 = $69,000

Loan principal = $345,000 - $69,000 = $276,000

Monthly mortgage amount = M = (P*r*(1+r)^n)/((1+r)^n - 1)

r= 4.553%/12 = 0.3794%

n = 30*12 = 360 months

M = $1,407.16

Total mortgage paid for 30 years = M * 360 = 506,577.6

Therefore, total interest paid = $506,577.6 - $276,000 = $230,577.6

Minimum monthly income needed = X

1407.16 = 30% * X

X = $4,690.533

Minimum annual income needed = Y = 12* X = 12 * $4,690.533 = $56,286.4

You received an investment opportunity in real estate. The
required investment amount is $1,000,000. Since you do not have
enough money, you are searched for partners. You found one friend
who would like to enter the investment. Although she does not have
the necessary funds today, she promises to transfer $400,000 in 4
years.
Accordingly, you have decided to take two loans:
1) A 4-year bullet loan with an annual stated interest rate
(APR) of 6.6% compounded monthly. The loan...

PLEASE ANSWER C!!!
Bob & Betty Homebuyers want to make an offer on this
property at the list price. Bob earns $48,000 per year and Betty
earns $54,000 per year. They have very good credit. Their monthly
payments are $200 for student loans, $350 for their car payment and
minimum credit card payment of $50. They have savings of $125,000.
The balance of their student loans is $40,000.
Insurance on this house will cost them $900 per year. Property
taxes...

Develop a spreadsheet model to determine how much a person or a
couple can afford to spend on a house. Lender guidelines suggest
that the allowable monthly housing expenditure should be no more
than 28% of monthly gross income. From this, you must subtract
total nonmortgage housing expenses, which would include insurance
and property taxes and any other additional expenses. This defines
the affordable monthly mortgage payment. In addition, guidelines
also suggest that total affordable monthly debt payments, including
housing...

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...

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...

Bob is a 28-year-old, unmarried man and the assistant manager of
a grocery store. He jokes about working at the grocery store just
to get his employee discount because his Great Dane eats about $50
worth of dog food a week! For the past five years, he's also been a
volunteer firefighter, drawing on his Navy training. Bob is really
proud of his condo, and is happy he'll have his big screen TV paid
off in a couple months because...

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...

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...

You are shopping for 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 downpayment and
credit score. Your bank has a requirement of 28% housing expense
ratio and your gross monthly income is $5,450. How much can you
afford to pay in principal, interest, taxes an insurance (PITI)
each month?
Show how you calculated how much you can afford to spend on a
home...

In insurance, the larger the number of exposures of a case, the
higher the risk for the insurance company to sell insurance for
that case.
T F
2. Among the many
different ways for people to handle risk, buying insurance is an
effective way to reduce risk.
T
F
3. A mortgage loan
with a negative amortization causes both the principal and interest
balances to increase over time.
T F
4. Your liability
insurance is designed to protect...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 9 minutes ago

asked 10 minutes ago

asked 20 minutes ago

asked 26 minutes ago

asked 28 minutes ago

asked 29 minutes ago

asked 37 minutes ago

asked 48 minutes ago

asked 49 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago