Carol Jones, a single person, has an annual income of $32,200. The principal and interest payment on the $25,000 loan (30 years at 8%) for her condominium is $7.34 per $1000. Annual property taxes are $1,200 and insurance is $280 а year.
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- Jennifer is saving up for the closing costs ($4250) and down payment on a home. For a better interest rate and savings on mortgage insurance, she must have a down payment of 10%. She can afford a monthly payment of $900 based on her current earnings and expenses. The amount available for the mortgage is reduced by an estimated $175 per month to cover home insurance and real estate taxes. The current nominal annual interest rate is 3% for a 30-year fixed-rate mortgage loan. How much of a loan can she afford? What is the corresponding house price? How much must she save?Jose and Rosa are looking for a condo. Their combined gross annual income is $61,000. The best mortgage rate offered by their bank is a 3.12 percent, five-year fixed rate compounded semi-annually with a 20-year amortization. The annual property taxes are estimated at $1,360, and the annual heating costs are $1,340. Their personal debt consumption is $500 per month. Condo fees are estimated at $700 per month. The bank's guideline for TDS is 30 percent. Based on this information, what is the maximum monthly mortgage payment they could afford? The maximum monthly mortgage payment they could afford is $ (Round to the nearest cent.)Fatimah pays monthly rent of $520 for her townhouse. If she bought the property, the mortgage loan, property tax, and utilities would cost her $920 per month. Using the current mortgage loan rate of 6.6% compounded semi-annually, calculate how much money Fatima could accumulate over 10 years if she continues to rent and invests the $400 per month difference. $77,085 $47,845 $67,768 $56,299
- Julie and Rex Parker plan to buy a $310,000 home, paying 20% downpayment and financing the balance at 4% for 30 years. The taxes are $6000 per year, with annual insurance costing $650 per year. Find the monthly payment (including taxes and insurance). Use the real estate amortization table to find the monthly payment. Loan Payoff Table Number of Months APR 18 24 30 36 42 48 54 60 APR 8% .05914 .04523 .03688 .03134 .02738 .02441 .02211 .02028 8% 9% .05960 .04568 .03735 .03180 .02785 .02489 .02259 .02076 9% 10% .06006 .04615 .03781 .03227 .02832 .02536 .02307 .02125 10% 11% .06052 .04661 .03828 .03274 .02879 .02585 .02356 .02174 11% 12% .06098 .04707 .03875 .03321 .02928 .02633 .02406 .02225 12% 13% .06145 .04754 .03922 .03369 .02976 .02683 .02456 .02275 13% 14% .06192 .04801 .03970 .03418 .03025 .02733 .02507 .02327 14% 15% .06238 .04849 .04018 .03467 .03075 .02783 .02558 .02379 15% 16% .06286 .04896 .04066 .03516 .03125 .02834 .02610 .02432 16% 17% .06333 .04944 .04115 .03565 .03176…A couple want to buy a house priced at $140,200. Last year, the property tax and fire insurance bills were $2,112 and $750, respectively. Neither is expected to increase significantly in the coming year. If the couple can qualify for a 30-year conventional mortgage at 8.5% annual interest, what is the total monthly bill they should expect for the mortgage, property tax, and fire insurance?Martha has decided to gift her parents with a small business. She conducted some market research and settled on opening a general store for them to run. To facilitate this, she plans to get a loan of Ksh. 600,000 from a bank to be paid in four equal yearly installments. The loan attracts an interest rate of 8% per annum. Required: 1: What is the annual payment that Martha has to make every year? 2: Prepare the loan amortization schedule for Martha for the four years. 3: Assuming that Martha was required to make monthly payments for a period of 3 years what would be the monthly payment (annuity)?
- A couple wants to purchase a $260,000 house, and they have the required 20% down payment and money for other closing costs. The bank is offering a 30-year mortgage at 4.625% interest, compounded monthly. The couple has an annual after-tax income of $55,000 and other debts totaling $650 per month. (a) If the maximum debt-to-income ratio (total monthly debt divided by after-tax monthly income) is 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, and interest?Paul and Stephanie Rewell plan to buy a $750,000 home, paying 20% down and financing the balance at 7% for 15 years. The taxes are $9270 per year, with fire insurance costing $1480 per year. Find the monthly payment (including taxes and insurance).Ann will prepay the new loan 3 years after refinancing. She will save $4,000 on her loan balance when she prepays. What is Ann's annualized IRR from refinancing? QUESTION 17 Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of $1200 and monthly homeowner's insurance of $300. Jim has $1,500 in monthly student loan payments and an average monthly credit card bill of $1,000. Apple bank has a maximum front end DTI limit of 28% and a maximum back end DTI limit of 36%. Considering both the front end DTI limit and the back end DTI limit, what is the most they will allow Jim to spend on a monthly mortgage payment? O A. $5,000.00 O B. $82,500.00 OC.$7,000.00 OD. $5,500.00 Click Save and Submit to save and submit. Click Save All Answers to save all answers.
- Maryanne purchases a house for $380,000 and takes a mortage for the full amount. Her mortgage charges 3% per year and interest is compounded monthly. She will repay the loan over 30 years with equal monthly payments. a) What is her monthly payment amount? b) How much of the 6th payment would be applied toward interest? c) How much of the 6th payment would be applied toward principal? Please show work or excel formuals usedHarriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $74,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? (Use the Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. Monthly payment Total cost of interest a. 25 Years, 4.75% $337.51 $42,053.00 b.25 Years, 5.25% c. 25 Years, 5.50% $363.54 $49,862.00 d. 25 Years, 5.75% e. What is the savings in interest cost between 4.75% and 5.75%? Note: Round your answer to the nearest dollar amount. Interest cost: f. If Harriet uses 30 years instead of 25 for both 4.75% and 5.75%, what is the difference in interest? Note: Use 360 days a year. Round your answer to the nearest dollar amount. Interest difference: TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year…Mr Teo wants to buy a house. His annual income is $48,000. The bank is willing to lend an amount that can be serviced by monthly payments equivalent to 35% of his monthly income. The interest rate on the bank loan is 4.8% per year with monthly compounding for a 20-year fixed rate loan. The real estate agent had advised Mr Teo to set aside $10,000 for initial down payment and transaction costs. Transaction costs are estimated at 1% of the loan. At the same time, Mr Teo plans to make a series of deposits in an individual retirement account. He had hoped to deposit $10,000 today, $20,000 in two years and $30,000 in five years. The interest rate offered is 3% per annum. He is worried that his retirement plan may be affected if he uses his existing cash of $10,000 to fund the down paymentand transaction costs of the resale flat. Mr Teo’s financial planner would like to recommend that Mr Teo invest in a portfolio of small-cap equities to generate higher returns. The portfolio has a beta of…