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Lini has been investigating the housing market. She found a wonderful new house priced at $205,000. Given their credit score, she is confident that she

Lini has been investigating the housing market. She found a wonderful new house priced at $205,000. Given their credit score, she is confident that she and Tucco can qualify for a 30-year, fixed-rate 5.20% mortgage. If they do purchase this home, how much of a down payment will they need to have in order to avoid PMI? How much will they need to put down if they use a 5% down payment?
do Lini and Tucco have sufficient assets to make either a 5% or 20% down payment? If they dont have enough, what can they do?
Lini anticipates receiving a gift from her parents to help offset the expense of a down payment. If a homeowners insurance policy will cost $1,400 per year and property taxes will be $4,300 per year, what will be their monthly PITI on a loan with a 20% down payment? What will be the monthly PITI with a 5% down payment, assuming private mortgage insurance costs $900 per year?
Do Lini and Tucco meet HUDs housing payments-to-income ratio? Do they meet HUDs total fixed payments-to-income ratio for either the 20% down payment scenario or the 5% down payment scenario?
Based on your estimates, do you agree or disagree with Lini that they should purchase a home, assuming they have at least a 5% down payment, at this time?
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their debt over the next four years. Finally, they are making student loan paymenta nocording to the standard repayment plan. Income and Expense Statement of the Lamar Household

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