I am on number 5 (i will take any help i can get with all of the questions though) the info you will need to help solve would be the cost of the home - 280,000. The down payment for the loan requires 20% as well as 25% (i have two). The average salary for the profession chosen is 70,000. Loan 1 is a 20% down payment and is a 30 year fixed loan with an APR of 3.430%. Loan 2 is a 30 year fixed loan with a 25% down payment and APR of 3.614%.

my monthly take home pay would be 4083.33 and my savings per month would be 20% of that which would be 816.67 per month into savings

a l Calculations. These calculations should be included as Appendix 3 lentitled "Calculations, coch calculation should be clearly labeled so they are easily found and identified Show all work for credit 4. Calculating Down Payments and Principals Using the formation you thered from the financial institutions and mortgage terms you chose in step 3. calculate the required down payment and the mortgage principal cost of home minus down payment) of the loan. (The principal is the amount you borrow from the bank for your mortgage 5. Calculating Take-home Pay and length of Savings Because it is such a large amount, most people, when deciding to buy a home, need to plan ahead and start saving for the down payment. Using the average starting salary in the career you chose after graduation as a guideline from #2.calculate your monthly take home pay, this is your net monthly pay after you have an average of 30% taken out for income taxes. Monthly take home neth pay after 30% income taxes gross annual salary x 0.70) +12 Assuming you can afford to put aside 20% of your monthly take home pay Monthly take-home pay x 0.20) into saving toward the down payment on your house, use the TVM Solver app for annuities on your calculator to determine how long it will take you to save up the amount of the required down payment if your savings earns 4% interest as 6. Calculating Payments: Using the amortization formula, calculate the monthly payment you would have to make on a loan for the amount of your loan principal for two different loan periods (15-20 or 30 years). (Do NOT use online loan payment calculators; however, check your calculations with TVM solver Hand-written calculations are acceptable if neat and organized. Or, in Microsoft Word, click the "Insert" tab and choose "Equation for the equation editor. 7. Calculating Total cost and Interest: Using the information and answers from above, calculate the total cost of your purchase; be sure to include everything you paid for the home down payment, closing costs, loan payments, etc.) over the life of the loan for the two different loan periods you chose. Then calculate how much interest you would pay on these loans (interest paid total of your mortgage payments over the life of the loan) - loan principal b 8. Calculating Annual Homeowners Insurance Property Taxes, and PM/MPI Homeowners are required to pay annual property taxes, based on the value of their home. Most real estate websites list the property taxes for the home as part of the listing. Look in the real estate listing wally at the bottom of the listing) for the house you chose to discover the anual property taxes paid last year for the home. you cannot find the property tax amount in the real estate listing Ogrs of the home's value (purchase price x 0.0088) as the amount of annual property taxes paid) in addition, if you e a mortgage you will be required to have homeowner's insurance in Indiana, the annual premium for owner's insurance averages about 0.35% of the value of the home. Use this percent to calculate the approximate al premium for homeowner's insurance on the house you chose to purchase (purchase price x 0.0035) If you are putting less e cutting less than 20% down payment on your home, you will also be required to purchase mortgage ance, often called PMI or MPL This is an insurance policy that your mortgage lender will take on you, in case you default on the loan, on the loan, so that the lender won't lose money on the home. Annual PMI/MPI costs are usually around 1% of of the house and the premiums are paid to the bank monthly along with your mortgage payment. If you are in less than 20% down payment, calculate your mortgage insurance as a monthly amount paid in addition to your ce payment (PMI - (loan principal x 0.01). 12). If you are paying at least 20% in your down payment, you will not have to pay PMI/MPI premium calculating Total Monthly Payment to protect their investment in your home, most banks require you to make onthly payments toward property taxes and homeowner's insurance premiums (annual costs divided by 12), as part of a monthly housing payment (housing - mortgage property tax + insurance . PMI/MIP). The bank then sets aside in an scrow account the amounts required to pay your property taxes and homeowner's insurance and pays them for you when they are due (usually every 6 months). How much more would be added to your mortgage payment each month to cover these? What is the total monthly housing payment for your house with these included, as well as PMI payments, applicable? 10. Can Lafford the house I chose Financial analysis recommend that no more than 25% of your monthly take-home pay go toward housing costs: this includes mortgage payments, property taxes, homeowner's insurance and PMI. Using your monthly take-home pay x 0.25) from #5, compute the maximum amount you should spend on housing monthly based on this 25recommendation (monthly take-home pay x 0.25). Based on this amount, can you afford this house