PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337117005
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 6, Problem 5FPE
Summary Introduction
To calculate: The amount of home equity credit line that can be obtained by Person A and Person LP and the amount of tax deductible interest.
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Sean and Amy Anderson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000.
Given that an S&L is willing to lend money at a loan-to-value ratio of 75%, how big a home equity credit line can Sean and Amy obtain?
How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
Isaiah and Allison Burton have a home with an appraised value of $190,000 and a mortgage balance of only $95,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 70 percent, how big of a home equity credit line can Isaiah and Allison obtain?
$
How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
$
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.)
Chapter 6 Solutions
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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