Discussion for Chapter 15

CONTRIBUTE TO A MORTGAGE DOWN PAYMENT With mortgage rates hovering at historic lows, now is an opportune time to buy a home for those who can swing the financing. If your child or grandchid has a strong enough income to qualify for a mortgage but is low on savings. consider kicking in all or a portion of the down payment With a conventionat mortgage backed by Fannie Mae or Freddie Mac, quallfying borrowers may put down as little as, 3% of the purchase price. With $10,000, you could fund the full down poyment for a home selling for as much as about $333,300. For those with a credit score of at least 580 , Federal Housing Administration loans allow a down payment as low as 3.5% of the purchase price; $10,000 would cover the full down payment with a sale price of up to about $285,700 Keep in mind that you'll usually need a down payment of at least 20 s of the purchase price to avoid private mortgage insurance on a conventional loan. If the borrower already has some savings, $10,000 contribution from you could push the down payment to the 20% threshold. PMI may cost about 0.50 to 2% of the loan amount per year. After the borrower pays off enough of the loan to gain 20% equity in the home. PMI is no longer tequired. You'il have to write the mortgage lender a letter stoting that the money is a gift and that you expect no repayment from the borrowet. The lender will also want to contim the gift's source. so you may have to provide a couple of recent statements for the bank account from which you withdraw the funds and document the source of any deposits during that period BUSINESS MATH ISSUE Prlvate Mortgage Insurance is required when buying a house. 1. List the key points of the article and information to support your position. 2. Write a group defense of your position using math caiculations to support your view if you are in on onine course. post to a discussion board