Determine whether the following situation is an example of business loans or consumer loans b. Cruz decided to take her family for a vacation.to cover the expenses she decided to apply for a loan. Business Loans O Consumer Loans
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- Ghislaine has bought a house. She borrowed most of the price of the house from Monster Bank, which holds a fixed charge over the house as its securityWhich of the following descriptions of the legal relationship between Ghislaine and Monster Bank is accurate? A. Ghislaine is the bank's receivable (debtor) and Monster Bank is Ghislaine's mortgageeB. Ghislaine is the bank's payable (creditor) and Monster Bank is Ghislaine's mortgagorC. Ghislaine is the bank's bailor and Monster Bank is Ghislaine's mortgageeD. Ghislaine is the bank's receivable (debtor) and Monster Bank is Ghislaine's balleeI need help for D, E, and G please You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1/5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per…First-time homeowners often use FHA loans to finance their home. Go to fha-home-loans.com and find out the current requirements to qualify for an FHA loan. They may differ slightly from that described in the book because the underwriting requirements frequently change. Summarize the types of loans that are currently available. What is the highest loan-to-value ratio that you could obtain?
- A young couple wishes to take out a sizeable home loan and, at the insistence of the bank, your client, ask the husband's elderly Chinese parents to guarantee: the loan. The parents have very limited spoken and written English. Under what circumstances would you advise your client, the bank, that they could successfully rely on this guarantee should the young couple default on their loan?This is a Debt Coverage Ratio or DCR question for part a and a CAP rate question for part b]. Wendy is going to purchase a commercial building and is working with a commercial lender at her local bank. The bank has some loan parameters that Wendy must follow. Understanding the rules will allow her to calculate her cash, income, and payment projections. The bank requires a 1.4 debt coverage ratio for her project. Wendy needs to calculate her net operating income or NOI first. The debt coverage ratio is based on this number. Then she will apply for a 20 year loan at 5% with annual payments. Information on the property includes: Gross rents- $780,000 Vacancy 5% Salaries $85,000 Other Fixed Expenses $125,000 Variable Expenses 20% of gross rents. NOI=_________________ Use the NOI and Debt Coverage requirement to calculate the answer. What is the largest annual payment the bank will allow? If Wendy had to buy the property at a 6% CAP (capitalization) rate, what is the asking price?PLEASE TYPE IT AND NOT HANDWRITTEN Mrs. Florentina Manayam wants to borrow P92,500 to buy a hand tractor that will be used on her farm. A local bank approved her loan payable in 3 years and 9 months. If the local bank charges 9.5% interest in advance, what is the amount of loan that Mrs. Manayam must apply for?
- Natalia has a monthly net income of $1,400. She has a house payment of $600 per month, a car loan with payments of $300 per month, a Visa card with payments of $60 per month, and a credit card with a local department store with payments of $32 per month. What is Natalia’s debt payment-to-income ratio? Is she within range of what experts suggest you spend on consumer credit payments?Your older sister, Anna is trying to figure out how she's going to pay for college in theFall. Anna is going over her options with you one night and she narrows it down toeither putting her college education on your parents’ credit card or taking out astudent loan. Which one would you suggest and why?Anna then tells you a story about her friend, Chad. Chad has a Target credit card thathe opened a few months ago. The other day he tried to use his credit card to buypopcorn at the movies, but it was denied. Explain to your sister why this happened.Before you are able to purchase a home you need to get pre-qualified and determine the maximum amount you can afford for the mortgage payment. The mortgage company that you visit uses the qualifying ratios 29/41. After speaking with the mortgage broker and answering several questions, the broker compiles this information regarding your income and expenses: You have a monthly income of $5,500. Your significant other that is living with your and will be on the loan earns $4,500 monthly. You have 2 car payments, one is $325 and the other is $280. Your significant other has a motorcycle payment of $450. You have a credit card payment of $25. Your significant other has a credit card payment of $180. The annual property tax in the area that you are considering to purchase the house has an average amount of $2800, while the average home insurance is $800 annually. Determine the anticipated monthly payment of the mortgage based on the given ratios. A) The Front-End (AKA: Housing) Ratio: ? B)…
- Establish a credit history. After graduating from college last fall, Holly Baker took a job as a consumer credit analyst at a local bank. From her work reviewing credit applications, she realizes that she should begin establishing her own credit history. Describe for Holly several steps that she could take to begin building a strong credit record. Does the fact that she took out a student loan for her college education help or hurt her credit record?What is the Schedule A deduction for interest expense? Paul paid interest to his lenders as follows: Primary home mortgage $7,200 Home-equity loan 435 (not acquisition debt) Credit cards 498 Car loan 390 Primary home mortgage Home-equity loan Credit cards Car loanRochelle needed to borrow $3,000 for three months in order to pay for college expenses while waiting for her scholarship to arrive. After Rochelle filled out the loan application, the loan officer at the bank asked her if she would like to pay the interest up front or at the maturity of the note. He went on to explain that it didn’t make a difference, but he preferred that she pay it up front because it would make his paperwork easier. He also told Rochelle that the interest rate and amount would be the same. Rochelle agreed, signed the three-month, 8%, discounted note and left with a check for $2,940. Did the loan officer offer Rochelle an acceptable explanation of the interest rate? Justify your answer. What is the effective rate of interest on Rochelle’s loan? Round to the nearest tenth of a percent.