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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?
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 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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