Question
I'm having difficulty solving this problem, I'm having issues understanding some of the concepts and when I use the financial calculator I'm not sure what
I'm having difficulty solving this problem, I'm having issues understanding some of the concepts and when I use the financial calculator I'm not sure what to input.
Here is the problem:
Anusha and Naveen are planning to buy their first home.They have saved $30,000 and will withdraw the maximum from their RRSPs under the Home Buyers' Plan.They will pay the cost of CMHC mortgage loan insurance separately.They estimate closing costs at $8,200 and will take a 25-year mortgage at a rate of 3.2%, compounded semi-annually, for a 3-year term.They will pay the mortgage monthly.The home they wish to buy costs $450,000.
Part b
How much will CMHC loan insurance cost?
CMHC mortgage loan insurance cost calculation
Part c
What will be the couple's monthly mortgage payment and loan balance at the end of their term?
Monthly mortgage payment calculation
Mortgage loan balance at end of term
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