Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . Compute the interest paid on a 3 0 - year mortgage for $ 3 0 5 , 9 4 4 if the annual

1. Compute the interest paid on a 30-year mortgage for $305,944 if the annual interest rate is 4.9%.
2. Brad and Samtake a 30-year mortgage for a house that costs $106,583. Assume the following:
* The annual interest rate on the mortgage is 3.5%.
* The bank requires a minimum down payment of 11% of the cost of the house.
* The annual property tax is 1.7% of the cost of the house.
* The annual homeowner's insurance is $795.
* There is no PMI.
If they make the minimum down payment, what will their monthly PITI be?
3. Suppose you take a 15-year mortgage for a house that costs $228,940. Assume the following:
* The annual interest rate on the mortgage is 4.3%.
* The bank requires a minimumdown paymentof 7% of the cost of the house.
* The annual property tax is 1.3% of the cost of the house.
* The annual homeowner's insurance is $554.
* The monthly PMI is $94.
If you make the minimum down payment, what is the minimum gross monthlysalary you must earn in order to satisfy the28% rule?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Changing Geography Of Banking And Finance

Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro

1st Edition

1441947205, 978-1441947208

More Books

Students also viewed these Finance questions