A couple found a house selling for $114,500. The taxes on the house are $1300 per year, and insurance is $340 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4950. They have more than 10 monthly payments remaining on a car, a boat, and furniture. The total monthly payments for these items is $420. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts a) through g) below. a) Determine the required down payment. The required down payment is $

A couple found a house selling for $114,500. The taxes on the house are $1300 per year, and insurance is $340 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4950. They have more than 10 monthly payments remaining on a car, a boat, and furniture. The total monthly payments for these items is $420. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts a) through g) below. a) Determine the required down payment. The required down payment is $

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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A couple found a house selling for $115,500.The taxes on the house are $1200 per year, and insurance is $360 per year. They are requesting a conventional loan from the local bank. The bank is currently requiring a 15% down payment and 3 points, and the interest rate is 10%. The couple's gross monthly income is $4850. They have more than 10 monthly payments remaining on a car, a boat, and furniture. The total monthly payments for these items is $420. Their bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts a) through g) below. Part 1 a) Determine the required down payment. The required down payment is $?
A'couple'found'a'house'selling'for'$113,500.''The'taxes'on'the'house'are'$1400'per'year,'and'insuarnce'is'$320' per'year.''They''are'requesting'a'conventional'loan'from'the'local'bank.''The'bank'is'currently'requiring'a'15%' down'payment'and'3'points,'and'the'interest'rate'is'10%.''The'couple’s'gross'monthly'income'is'$4750.''They' have'more'than'10'monthly'payments'on'a'car,'a'boat,'and'furniture.''The'total'monthly'payments'for'these' items'is'$430.'Their'bank'will'approve'a'loan'that'has'a'total'monthly'mortgage'payment'of'principal,'interest,' property'taxes,'and'homeowners’'insurance'that'is'less'than'or'equal'to'28%'of'their'adjusted'monthly'income. a.Determine'their'total'monthly'payment,'including'homeowners’'insuarance'and'taxes. b.Determine'whether'the'couple'will'qualify'for'the'20cyear'loan. c.Determine'how'much'of'the'first'payment'on'the'loan'is'applies'to'the'principal.
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