Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 740 or higher. How much more interest would you pay on a $195,000 home if you put 20% down and financed the balance with a 30-year mortgage at 6% compared to a 30-year mortgage at 3 1/2%? what is interest paid?

Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 740 or higher. How much more interest would you pay on a $195,000 home if you put 20% down and financed the balance with a 30-year mortgage at 6% compared to a 30-year mortgage at 3 1/2%? what is interest paid?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 7FPE

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Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 740 or higher. How much more interest would you pay on a $195,000 home if you put 20% down and financed the balance with a 30 year mortgage at 6% compared to a 30 year mortgage at 3 1/2?
1. Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay ona $194,000 home if you put 30% down and financed the remaining amount with a 30-year mortgage at5.5% interest compared to a 30-year mortgage at 3.5% interest? (Use the amortization worksheet.)$
Here are the guidelines from most financial advisers:• Spend no more than 28% of your gross monthly income for your mortgage payment.• Spend no more than 36% of your gross monthly income for your total monthly debt. Suppose that your gross annual income is $240,000.a. What is the maximum amount you should spend each month on a mortgage payment? b. What is the maximum amount you should spend each month for total credit obligations? c. If your monthly mortgage payment is 90% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt?
You own a home that was recently appraised for $310,000. The balance on your existing mortgage is $115,350. If your bank is willing to loan up to 70% of the appraised value, what is the potential amount (in $) of credit available on a home equity loan? $_______
A mortgage banking company has been evaluating the merits of a 50-year mortgage (in addition to their popular 30-year mortgage). The basic idea is to reduce the monthly payment and make home ownership more affordable. The APR of either mortgage is 6%, and the compounding is monthly. Solve, a. For a mortgage loan of $300,000, what is the difference in the monthly payment for the 30-year mortgage and the 50-year mortgage? b. What is the difference in total interest paid between the two mortgages?
You are in the market to buy a home. You plan on borrowing $312,627 from the bank. Interest rates are currently 3% for a 30 year mortgage (hypothetically, not actually). How much money will you pay in interest over the lifetime of the loan? Round to the nearest whole number.
Suppose you want to purchase a house. Your take-home pay is $4270 per month, and you wish to stay within the recommended guidelines for mortgage amounts by only spending 1/4 of your take-home pay on a house payment. You have $18,500 saved for a down payment and you can get an APR from your bank of 5.7%, compounded monthly. What is the total cost of a house you could afford with a 3030-year mortgage? Round your answer to the nearest cent, if necessary.
Suppose you want to purchase a house. Your take-home pay is $2790 per month, and you wish to stay within the recommended guidelines for mortgage amounts by only spending 14 of your take-home pay on a house payment. You have $15,600 saved for a down payment and you can get an APR from your bank of 3.9% compounded monthly. What is the total cost of a house you could afford with a 30 -year mortgage? Round to the nearest cent, if necessary.
Please show all steps and formulas in an excel spreadsheet to answer a. through g. using the information below! You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%. Assuming the total transaction cost is $10,000. a. What is your loan amount? b. What is your monthly payment? c. What will be the loan balance at the end of nine years? d. What is the effective borrowing cost if the loan will be prepaid at the end of nine years? e. In the monthly payment, how much you pay for the principle and how much you pay for the interest in the 1st and the 2nd month? f. What will be your interest payments for the first 5 years (year 1 to year 5) and the last 5 years (year 26 to year 30)? g. What is your annual percentage rate (APR)?
A mortgage banking company has been evaluating the merits of a 50-year mortgage (in addition to their popular 30-year mortgage). The basic idea is to reduce the monthly payment and make home ownership more affordable. The annual percentage rate (APR) of either mortgage is 6%, and the compounding is monthly. a. For a mortgage loan of Php 9,700,000, what is the difference in total interest paid between the two mortgages? (Do not solve using excel)
Please build an excel spreadsheet and show the formulas to answer a. through g. using the information below You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%. Assuming the total transaction cost is $10,000. a. What is your loan amount? b. What is your monthly payment? c. What will be the loan balance at the end of nine years? d. What is the effective borrowing cost if the loan will be prepaid at the end of nine years? e. In the monthly payment, how much you pay for the principle and how much you pay for the interest in the 1st and the 2nd month? f. What will be your interest payments for the first 5 years (year 1 to year 5) and the last 5 years (year 26 to year 30)? g. What is your annual percentage rate (APR)?
Suppose your gross monthly income is $5,500 and your current monthly payments are $575. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)$