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- The Smiths purchase a $600,000 house and must sell their old home inorder to make a 20 percent down payment plus closing costs of $7,000 onthe new house. Currently, they have a mortgage balance of $100,000 ontheir old home, which has been appraised at $300,000. They have beenpre-approved by the lender to qualify for a $480,000 mortgage in the newhome. The lender offers a bridge loan at 10 percent simple interest. Theclosing date on the new house is February 13, and the Smiths sell their oldhome on May 15.a. How much cash must the Smiths put down on their new house?b. How much equity do the Smiths have in their old house? c. How much must they borrow if they take a bridge loan?d. What is the dollar amount of interest paid on the bridge loan?After paying a 20% deposit on a $300,000 home, David and Kennah finance the rest of the home cost and the closing fees for their home purchase with a 30-year loan for $251,439 that charges an annual percentage rate of 3.05%. Calculate the total sum (NOT A SINGLE MONTHLY PAYMENT) of all monthly payments required to pay off this loan.A couple wants to purchase a $260,000 house, and they have the required 20% down payment and money for other closing costs. The bank is offering a 30-year mortgage at 4.625% interest, compounded monthly. The couple has an annual after-tax income of $55,000 and other debts totaling $650 per month. (a) If the maximum debt-to-income ratio (total monthly debt divided by after-tax monthly income) is 43%, can the couple afford to purchase the home? (b) If the couple lives in the house for 30 years, what is the total amount paid for the house, including down payment, principal, and interest?
- A couple buys a $190,000home, making a down payment of 16%. The couple finances the purchase with a 15 year mortgage at an annual rate of 2.88%. Find the monthly payment. If the couple decides to increase the monthly payment to $1100, find the number of payments.Betty Price purchased a new home for $265,000 with a 20% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $Maria and Mike are purchasing their first home together in British Columbia. Their conditional offer of purchase has an agreed-upon purchase price of $1,000,000. They have decided to sell their current Cando at 750,000 with a mortgage balance of 600,000 and use the sales proceeds as down payment. They also will use $100,000 from their joint high-interest savings account as their down payment. Considering 4% closing cost and 6% agent commission, Calculate LTV and total mortgage amount?
- Mark Gore plans to get married and he wants to purchase a house for $1 800 000. He entered intoan agreement with National Housing Trust (NHT) to provide 50% financing which involvedmonthly payments over five (5) years at 12% per annum. The remainder of the funds would beborrowed from his commercial bank. Terms of the bank loan are 10% down payment with thebalance to be repaid at 20% interest over three (3) years.A. Calculate monthly payments to NHT if payments are made at the end of eachmonth. B. Compute annual end of year payments to the commercial bank. C. Considering B. above, prepare the amortisation schedule for this loan.A borrower is purchasing a property for $325,000. She is considering the following three loans: Loan 1: 75% LTV, 30 year FRM, fully amortizing, 4% interest Loan 2: 80% LTV, 30 year with 5 year IO period fully amortizing, 3.25% interest in IO period, 5 percent interest after IO period ends. Loan 3: 90% LTV, 15 year FRM, fully amortizing, 3.5% interest If the borrower held each loan until maturity, how much in interest would she pay on each loan?Lillian took out a 20-year loanfor $170,000 at 8.8% interest,compounded monthly. If hermonthly payment on the loanwill remain $1507.74 for the lifeof the loan, how much will Lillianhave paid in interest once theloan is paid off?
- Daniel and Jan agreed to pay $556,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $70,000 down payment. They have a 25-year mortgage at a fixed rate of 638638 %. (Use Table 15.1.) a. How much is their monthly payment? Note: Round your answer to the nearest cent. Monthly payment: b. After the first payment, what would be the balance of the principal? Note: Round your answers to the nearest cent. Payment number Portion to interest portion to principal Balance of loan outstanding 1 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625…Laura and Martin obtain a 30 year, 180,000 conventional mortgage at 10.0% on a house selling for 210,000. Their monthly mortgage payment, including principle and interest, is 1566.00. Determine the total amount they will pay for the house. How much of the cost will be in interest? How much of the first payment on the mortgage is applied to the principal?Sarah secured a bank loan of $190,000 for the purchase of a house. Themortage is the amortized through mothly paymetns for a term of 15 years, with an interst rate of 3%/year compunded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will SArah still owe on her house at that time? (round your answer to the nearest cent)