For a & b the answers are either yes or no. c & d are calculations

costs are estimuted at 1240 per month. The 5 tam huve s combined income of 484,000 per year, wh thict home pay of $5,100 per month. They are in the 25 percent tor bracket, swy 1225 per month on an invexilment loan (tan parments left), snd have $40,000 in savings and investments outsde of theic retirement accounts. a. Can the 5tars affard to buy the conde? Use the resuts frem the Gavmavifargue companion website or the informatien of o wapport your answer. Ass, consider the effect of the purchase en their savings and monthiy budget. Aspy o front-end reio of 25 percent and bockend ratio of 36 percent. Assume the lender wowld require the montsiy homeownert fee also be incuded in the calculations as a houting cost. C. If ther buy, hew much will Dove and buce have left in sevings to bay for moving expenses? Round your antwer to the nearest dolla. Garmaniforgue companion nebeste to caliovate the payment. Hound your antser to the Mearest doilar. Jalle 9-4 Estimating Mortgage Loan Payments for Principal and Interest (Monthly Payment per 51,000 Borrowed) Should You Buy or Rent? will put the finandal picture into focus. This worksheet can be used to estimate whether you A similar worksheet can be found at would be better off renting housing or buying. If you are _win. finance.yahoo.com/calculator/ renting an apartment and planning to buy a house, qualita- real-estate/hom06. tive differences will enter into your decision. This worksheet 'Calculated from Table 94 on page 285 "Calculated occording to the method llustrated in Table 92 on page 283 . 'Mortgage interest tax savings equal total mortgage payments minus principal repaid muthplied by the margina tax rate