Question

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
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

We need to find the present value of the monthly payments. That gives the borrowed amount. Divide the borrowed amount by (1 - down payment %)

r = 7%/12 = 0.005833333333

Number of monthly payments = 30 * 12 = 360

This is the amount Sally Mander borrowed.

The price of the house = Amount borrowed/(1 - down payment %)

The price of the house = 165,338.324740305/(1 - 0.20)

The price of the house = 206,672.905925381

The price of the house = 206,673

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
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? ]
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.
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?
you can afford monthly payments of $500 if current mortgage rates are 2.94% for a 15...
you can afford monthly payments of $500 if current mortgage rates are 2.94% for a 15 year fixed loan rate how much can you afford to borrow? If you are required to make a 10% down payment and you have the cash on hand to do it how expensive of a home can you afford?
consider a 15 year-mortgage with a 3% APR interest rate and a 20% down payment. If...
consider a 15 year-mortgage with a 3% APR interest rate and a 20% down payment. If you can afford a $1500 monthly payment, how expensive a house can you buy ? 271,510 217,208 298,402 254,250
1. A homeowner planning a kitchen remodeling can afford a $800 monthly payment. How much can...
1. A homeowner planning a kitchen remodeling can afford a $800 monthly payment. How much can the homeowner borrow for 3 years at 6%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.) 2. The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man buys a house for $380,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over...
What size mortgage can you afford if you can make a monthly payment of $1,200 per...
What size mortgage can you afford if you can make a monthly payment of $1,200 per month for 30 years? You can borrow at 2.5%, compounded monthly. PV= FV= PMT= N= I/Y=
You plan to purchase a used motorcycle for $6,500. You can only afford a monthly payment...
You plan to purchase a used motorcycle for $6,500. You can only afford a monthly payment of $200 for a period of two years. You can get a 9% loan, compounded monthly. Since you have lent money to your mother in the past, she has lovingly agreed to give you the down payment needed to get your monthly payment to the $200 level, if you promise that you will always wear a helmet. Ignoring the cost of the helmet, how...
a. Compute the monthly mortgage payment for a $200,000 mortgage loan for 30 years with a...
a. Compute the monthly mortgage payment for a $200,000 mortgage loan for 30 years with a contract rate of 4.5%. b. What is the payment for a 15 Year $200,000 loan at a rate of 3.875%?
You can afford a $1200 per month mortgage payment. You've found a 30 year loan at...
You can afford a $1200 per month mortgage payment. You've found a 30 year loan at 6% annual interest compounded monthly. a) How big of a loan can you afford? $ b) How much total money will you pay the loan company? $ c) How much of that money is interest? $
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT