Question
A home is selling for $750,000.Mr. Wilson earns $175,000 a year his wife earns $193,000 ayear.They have 2 years left on their car payment of$697
- A home is selling for $750,000.Mr. Wilson earns $175,000 a year his wife earns $193,000 ayear.They have 2 years left on their car payment of$697 per month and 7 months left ontheir personal loan of $2800 per month.
The Wilson's are putting 25% down.The loan is 4.875% fixed for 30 years.They got such alow rate by purchasing 3 points.Closing costs not including points is $8,875. Property taxesare $11,800 per year and home owners insurance is $1500 per year.
- a) What is the cost of the points?
- b) What is the monthly payment for principle and interest?
- c) What is the total monthly mortgage payment including taxes and insurance?
- d) How much money do they need at closing?
- e) How much of the first payment went towards interest?
- f) How much did they spend on the house in total?
- g) How much did they spend on interest?
- h) What is the Wilson's adjusted monthly income?
- i) What is the maximum payment that they can afford?
- j) Will they qualify for the loan? Explain.
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A First Course in Differential Equations with Modeling Applications
Authors: Dennis G. Zill
10th edition
978-1111827052
