In the spring of 2022, you and your family were looking for the house of your dreams. Given your household income and your expenses, you determined that you could afford to pay $1,250 for a monthly house payment. As of February 2022, it looked like you could get a 30-year mortgage rate of 3.20%. a) Given the above information, what is the maximum amount you could finance for your dream home?
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5. In the spring of 2022, you and your family were looking for the house of your dreams. Given your household income and your expenses, you determined that you could afford to pay $1,250 for a monthly house payment. As of February 2022, it looked like you could get a 30-year mortgage rate of 3.20%. a) Given the above information, what is the maximum amount you could finance for your dream home?
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- In the spring of 2022, you and your family were looking for the house of your dreams. Given your household income and your expenses, you determined that you could afford to pay $1,350 for a monthly house payment. As of February 2022, it looked like you could get a 30-year mortgage rate of 3.20%. a) Given the above information, what is the maximum amount you could finance for your dream home? b) You got busy and didn’t find the right home and now it is summer 2023 and you are looking at homes again. The good news is that there are more homes available for sale, but the bad news is that mortgage rates have gone up because of inflation. Assuming that you can get a rate of 7.15% APR for a 30-year mortgage and further assuming that you can still afford to pay $1,350 per month, what is the highest amount you can now finance on a home?5. In the spring of 2022, you and your family were looking for the house of your dreams. Given your household income and your expenses, you determined that you could afford to pay $1,650 for a monthly house payment. As of April 2022, it looked like you could get a 30-year mortgage rate of 3.6%. 3 a) Given the above information, what is the maximum amount you could finance for your dream home? als (sun elas Sumbawod vlast b) You got busy and didn't find the right home and now it is spring 2024 and you are looking at homes again. The good news is that there are more homes available for sale, but the bad news is that mortgage rates have gone up because of inflation. Assuming that you can get a rate of 7.44% APR for a 30-year mortgage and further assuming that you can still afford to pay $1,650 per month, what is ghibruo the highest amount you can now finance on a home? all have a total payAnswer the following questions about your possible future home purchase by filling in all information below. If I buy a house for __________ , pay 20% downpayment and obtain 30 year mortgage with interest rate 3.2% then my loan amount is going to be ______________, my monthly payment will be __________________. Over the 30 years I will pay total interest of _______________, and the total amount I will pay over 30 years will be ____________. (You may use online APR calculator or do it by hand) Print your answer as a list of 5 answers: house price =_____________ loan amount=______________ monthly payment=______________ total interest=_________________ total amount paid=_______________
- 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?Answer the following question using a spreadsheet and the material in the appendix. You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year to a lender for the next 30 years. If the interest rate is 7% how much can you borrow today based on your ability to pay? What about if the interest rate is 3%? Maximum mortgage at 7%: $ Maximum mortgage at 3%: $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?
- You plan to buy a home for $100,000 in the future and you want to guarantee that you could afford it in the future. What would you buy/sell today to accomplish this in the future, and what would it cost in today’s dollars?You are thinking about buying a house.You find one you like that costs $200,000. You learn that your bank will give you a mortgage for $160,000 and that you would have to use all of your savings to make the down payment of $40,000. You calculate that the mortgage payments, property taxes, insurance, maintenance, and utilities would total $950 per month. Is $950 the cost of owning the house? What important factor(s) have you left out of your calculation of the cost of ownership, if any?Please explain how to do this in Excel. Please explain how you did it and what the results mean.You plan to buy a house in December 2023. The sale price is $650,000. You need to pay 20% down payments and borrow the additional 80% from Bank of America with a 30-year, 7.2% fixed-rate mortgage loan. You need to pay an equal MONTHLY payment starting from January 1, 2024, for a total of 30 years. (1) Calculate your expected monthly mortgage payment. (2) Develop the full amortization table for your mortgage loan. (3) When you prepare your 2024 tax filing, what is the total mortgage interest payment that you can consider for the tax deduction?
- Suppose Rachel and Nadia buy a house and have to take out a loan for $195500. If they qualify for an APR of 4% and choose a 30 year mortgage, we can find their monthly payment by using the PMT formula. If Rachel and Nadia decide to pay $1500 per month, we can use goal seek to see how many years it will take to pay off the loan. Use the PMT function and goal seek (as needed) to answer the following questions about Rachel and Nadia's mortgage. d. If they want to have monthly payments of $600 and still pay the loan off in 30 years, what interest rate would they have to qualify for?Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…Suppose Rachel and Nadia buy a house and have to take out a loan for $191000. If they qualify for an APR of 4.25% and choose a 30 year mortgage, we can find their monthly payment by using the PMT formula. If Rachel and Nadia decide to pay $1500 per month, we can use goal seek to see how many years it will take to pay off the loan. Use the PMT function and goal seek (as needed) to answer the following questions about Rachel and Nadia's mortgage. a. What is their monthly payment on the 30 year loan? $ b. If they qualify for the same APR on a 15 year loan, what will the new monthly payment be? $ c. If Rachel and Nadia have monthly payments of $1500 each month, how long will it take for them to pay off their loan? years d. If they want to have monthly payments of $650 and still pay the loan off in 30 years, what interest rate would they have to qualify for? %