A couple wants to purchase a new house and feel that they can afford a mortgage payment of $600 a month. They are able to obtain a 30-year 7.4% mortgage (compounded monthly) but must put down 20% of the cost of the house. Assuming that they have enough savings for the down payment, how expensive a house can they afford? The couple can afford a house that costs up to $
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- A couple who wants to purchase a home with a price of $340,000 has $100,000 for a down payment. If they can get a 25-year mortgage at 6% per year on the unpaid balance, find each of the following. (a) What will be their monthly payments? (b) What is the total amount they will pay before they own the house outright? (c) How much interest will they pay over the life of the loan? (a) Their monthly payments would be approximately $ (Do not round until the final answer. Then round to the nearest hundredth as needed.) (b) They will pay a total amount of approximately $ before they own the house outright. (Use the answer from part a to find this answer. Round to the nearest hundredth as needed.) (c) The total interest is approximately $ (Use the answer from part b to find this answer. Round to the nearest hundredth as needed.)A couple who wants to purchase a home with a price of $290,000 has $50,000 for a down payment. If they can get a 20-year mortgage at 7% per year on the unpaid balance, find each of the following. (a) What will be their monthly payments? (b) What is the total amount they will pay before they own the house outright? (c) How much interest will they pay over the life of the loan? (a) Their monthly payments would be approximately $. (Do not round until the final answer. Then round to the nearest hundredth as needed.)A young couple decide to take advantage the current first-time home buyer credit and buy a new house. With their combined income, they can afford to make a maximum of $550 monthly payment. With their credit history, they can borrow a 30-year fixed rate mortgage loan at 6.0% (mortgage loans compound monthly). What's the maximum amount they can borrow?
- Problem: Your cousin and her partner have a combined gross income of $10,111 and monthly expenses totaling $3,205. They plan to buy a house with a mortgage whose monthly PITI will be $2,000. (a) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year mortgage at 3.25% annual interest rate for the cost of the house after they receive a 20% down payment. At the end of the 15-years, how much total money will you have paid to Bank of America for your home? In another word how much did the $415,000.00 house really cost the couple?A couple plans to purchase a house. The bank requires a 20% down payment on the $470,000 house. The couple will finance the rest of the cost with a fixed- rate mortgage at 3% annual interest with monthly payments over 30 years. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas (a) Find the required down payment. $ (b) Find the amount of the mortgage. $0 (c) Find the monthly payment. $
- Your friend is currently paying $734 in rent monthly in Fort Wayne and would rather apply the payment toward purchasing a home. If she can get a 30 year mortgage at 4.67% APR using her current payment amount, how much could she borrow? What could you type into Excel to calculate this value?A couple visits an open house and fall in love with the floor plan and location. They tell the host they would love to buy the house but do not know if they can afford it. In the conversation, the broker learns that they are currently paying $1750 per month for rent. Would the principal and interest payments be within the amount of their current rent if the price is $249,000 with interest rates for a zero down, 30 years mortgage at 5% interest? Note: 30 years of 5% interest is $5.37. A. Only if they have a 20% down payment. B. No, the payment is more than their current rent amount C. There is not enough information to determine an answer D. Yes, the payment is within the range of their current rent amount.A couple plans to purchase a vacation home. The bank requires a 5% down payment on the $230,000 vacation home. The couple will finance the rest of the cost with a fixed-rate mortgage at 6% annual interest with monthly payments over 30 years. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas. (a) Find the required down payment. s (b) Find the amount of the mortgage. s (c) Find the monthly payment. $0
- Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers them a mortgage at an interest rate of 3.10%, compounded semi-annually, with an amortization period of 25 years. a) What is the maximum amount of money the bank will lend them for their mortgage? Show your work. b) If they have $30,000 saved for a down payment, what is the maximum house price they can afford?A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on the house and put $10,000 as a down payment. The bank informs them that with a 15-year mortgage their monthly payment would be $718.77 and with a 30-year mortgage their monthly payment would be $582.86. Determine the amount they would save on the cost of the house if they selected the 15-year mortgage rather than the 30-year mortgage. **** How much would they save if they selected the 15-year mortgage?A couple completely owns one home but is purchasing a second home for $120,000. They will put down 20% and will take out a 15-year FRM with 3% APR for the money they need to borrow. They plan on renting out the home for $1200 a month. They are planning on pocketing the extra money made over the mortgage payment. 1) How much money will they be pocketing a month? (Hint: First, determine the monthly mortgage payment, then subtract it from $1200). 2) How much interest would they save if they instead put that extra money toward the mortgage each month (Hint: Determine the total interest paid originally and the total interest paid if you made the extra payment, then subtract the two). 3) How many years does that cut off of the loan? For simplicity we’ll ignore taxes and insurance. 3. Suppose that you have taken out subsidized Stafford loans totaling $20,000 over your four years in college. Your rate is a fixed 3.86% and you will repay using a standard ten-year repayment plan. Find your…