Problem 34 Find the listing price and estimated monthly mortgage payment provided by the website (Zillow and Redfin assume a 20% down payment and a 30-year fixed loan). Use the information to complete the following table, and then answer the questions below. - Property Listing Price: Loan Amount (after 20% down payment): Interest Rate (APR, monthly compounded): 4 Monthly Mortgage Payment: a. What is the EAR corresponding to the APR? What is the effective monthly rate? Which rate should you use to calculate the monthly mortgage payment? b. Please use your financial calculator to verify the monthly mortgage payment (assuming a 30-year fixed loan and 20% down payment). How much more does a homebuyer have to pay if the APR was up by 1%? ttttttt e c. Other than the mortgage payments, can you think of other expenses or payments related to buying a property? What do you think is the minimum income for a home-buyer to safely afford this property? Please briefly explain your answer, for simplicity, you can ignore income taxes. $1,010 per month Find a Lender Go to Principal and Interest $574 Property Taxes $356 Homeowners' Insurance $80 ( Down Payment 20% ($34,980) Home Price $174,900 Loan Details 30 yr, 2.789% It's free Down Payment Cash $34,980 20% Have a home to sell? Add my home equity Cash Home Equity $34,980 $0 Total Down: $34,980 (20%) Down payment assistance programs may lower the up-front cost of buying. Learn more. c Home Facts Status Active Time on Redfin 5 days Property Type Year Built 1965 Single Family Residential Community Spring Vly Sec 11 Lot Size 0.27 Acres MLS# 843712 Price Insights List Price $174,900 Est. Mo. Payment $1,010 Redfin Estimate $175,273 Price/Sq.Ft. $99 Problem 34 Find the listing price and estimated monthly mortgage payment provided by the website (Zillow and Redfin assume a 20% down payment and a 30-year fixed loan). Use the information to complete the following table, and then answer the questions below. - Property Listing Price: Loan Amount (after 20% down payment): Interest Rate (APR, monthly compounded): 4 Monthly Mortgage Payment: a. What is the EAR corresponding to the APR? What is the effective monthly rate? Which rate should you use to calculate the monthly mortgage payment? b. Please use your financial calculator to verify the monthly mortgage payment (assuming a 30-year fixed loan and 20% down payment). How much more does a homebuyer have to pay if the APR was up by 1%? ttttttt e c. Other than the mortgage payments, can you think of other expenses or payments related to buying a property? What do you think is the minimum income for a home-buyer to safely afford this property? Please briefly explain your answer, for simplicity, you can ignore income taxes. $1,010 per month Find a Lender Go to Principal and Interest $574 Property Taxes $356 Homeowners' Insurance $80 ( Down Payment 20% ($34,980) Home Price $174,900 Loan Details 30 yr, 2.789% It's free Down Payment Cash $34,980 20% Have a home to sell? Add my home equity Cash Home Equity $34,980 $0 Total Down: $34,980 (20%) Down payment assistance programs may lower the up-front cost of buying. Learn more. c Home Facts Status Active Time on Redfin 5 days Property Type Year Built 1965 Single Family Residential Community Spring Vly Sec 11 Lot Size 0.27 Acres MLS# 843712 Price Insights List Price $174,900 Est. Mo. Payment $1,010 Redfin Estimate $175,273 Price/Sq.Ft. $99
