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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 You have a monthly salary of $ while your partner has a monthly income of $ You also have income from interest in an investment of approximately $a month. You and your partner both your own car loans, yours has a $ monthly car payment and your partner has a $ monthly car payment. You have two credit cards with $ minimum payment and $ minimum payment each month. If you estimate that property taxes will cost about $ a year and insurance will cost about $ 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 $ at compounded monthly for 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 years.
c Amortization the first 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
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