Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You decided to start looking for a home and consider a prequalification for a home loan. After talking with a lender, you are informed that

You decided to start looking for a home and consider a prequalification for a home loan. After talking with a lender, you are informed that the lending company uses the qualifying ratios of 29/40. You have a monthly salary of $3,900, while your partner has a monthly income of $1,300. You also have income from interest in an investment of approximately $52.08a month. You and your partner both your own car loans, yours has a $625 monthly car payment and your partner has a $567 monthly car payment. You have two credit cards with $29 minimum payment and $22 minimum payment each month. If you estimate that property taxes will cost about $1,375 a year and insurance will cost about $550 a year, what is an approximated maximum monthly payment that you can qualify for?
Be sure to include the work for finding payments based on each ratio while answering the question.
After doing the prequalification and see what you can afford at maximum, you find a home that has a price of $290,000 at 5.76% compounded monthly for 30 years.
a. Based on your answer from part A, will you be able to afford the monthly payment? Answer with a yes or no and justify your answer by finding the monthly payment. Provide an explanation as to why you can or cannot afford the house.
b. Find the total amount of interest that will be paid back after the 30 years.
c. Amortization the first 3 months of the mortgage by filling in an amortization schedule table (regardless of being able to afford the mortgage). Be sure to show the work
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance And Investment

Authors: Terrence M. Clauretie, G. Stacy Sirmans

8th Edition

1629809942, 9781629809946

More Books

Students also viewed these Finance questions

Question

=+1. How will you measure awareness objectives?

Answered: 1 week ago

Question

=+2. How will you measure acceptance objectives?

Answered: 1 week ago

Question

What distinguishes craft and industrial unions from each other?

Answered: 1 week ago