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Assume the mortgage that terms that Emma will have are based on a fixed- rate, 30-year maturity, 80% LTV, with no points. The mortgage interest
Assume the mortgage that terms that Emma will have are based on a fixed- rate, 30-year maturity, 80% LTV, with no points. The mortgage interest rate that she was quoted is 4.25% with monthly payments. Assume that property tax rate in the city of Oxford is 1.2% per year based on property value; assume the hazard insurance premium is 0.7% per year based on property value and assume $60 per month for maintenance.
Determine the required monthly mortgage payment and the maximum house value she can afford if she buys.
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