Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could someone please answer and show all work for parts A-G? Thank you very much. i added a clearer image of the same question so

Could someone please answer and show all work for parts A-G? Thank you very much. image text in transcribed
image text in transcribed
i added a clearer image of the same question so it is easier to understand
You dont need more information.
A couple found a house in or $115.500. The on the house wet200 per year, and insurance is $ per year. They are enga convention on the local bank. The bank's currently requiringa 15% down payment and 3 points, and the interest rate 10%. The couple's gros monthly income S479. They have more than 10 monthly payments remaining on a car, boat and future. The total monthly payments for these terms a Szo. Their bank wil proven that has a monthly mortgage payment of principales property and homeowners in that is an orgullo 28% their sted monthly income Complete parts are allow Determine the required down payment The required to me Determine the cost of the 3 ports The cost of the points a $(Round the warded) 25 of their duted monthly income Round is the nearest dolore needed) di Determine e manter 20- yarim The moment of proper en stor a 20-year canis 50 Round to the newest contended) Determine the money payment, including homeowners insurance and we There monthly payment induding homeowners incendis Round the recent as needed.) Determine whether the couple way for the 20-year to Choose the core we below al Determine how much of the first payment on the led to the principal The amount of the payment to the Round to the recent as needed.) A couple found a house selling for $115,500. The taxes on the house are $1200 per year, and insurance is $340 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4750. They have more than 10 monthly payments remaining on a car, a boat, and furniture. The total monthly payments for these items is $420. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts a) through g) below. Determine the required down payment. The required down payment is $ b) Determine the cost of the 3 points. The cost of the three points is $(Round to the nearest dollar as needed.) c) Determine 28% of their adjusted monthly income. 28% of their adjusted monthly income is $. (Round to the nearest dollar as needed.) d) Determine the monthly payments of principal and interest for a 20-year loan The monthly payment of principal and interest for a 20-year loan is $0. (Round to the nearest cent as needed.) e) Determine their total monthly payment, including homeowners' insurance and taxes. Their total monthly payment, including homeowners' insurance and taxes is $0. (Round to the nearest cent as needed.) f) Determine whether the couple will qualify for the 20-year loan. Choose the correct answer below. Yes No g) Determine how much of the first payment on the loan is applied to the principal The amount of the first payment that is applied to the principal is $ (Round to the nearest cent as needed.)

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

Step: 3

blur-text-image

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

Investing In Fixed Income Securities Understanding The Bond Market

Authors: Gary Strumeyer

1st Edition

0471465127, 9780471465126

More Books

Students also viewed these Finance questions

Question

How would you train others to perform the task? Explain.

Answered: 1 week ago

Question

Why is it important for a firm to conduct career development?

Answered: 1 week ago