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#### Concept explainers

** Evaluating a Loan Request** The Nejems found a house selling for $550,000. The taxes on the house are $5634 per year and the insurance is $2325 per year. The Nejems are requesting a conventional loan tom a local bank. The bank requires a 20% down payment and 3 points at the closing. The Nejems are trying to qualify for a 30-year mortgage with an interest rate of 5 5%. Their gross monthly income is $15,375. They have more than 10 monthly payments remaining on a car loan, student loans, and a furniture loan The total of these monthly payments is $995. Their bank will approve a loan that has a total monthly house payment of principal, interest, property taxes, and homeowners’ insurance that is less than or equal to 28% of their adjusted monthly income.

- a. Determine the required down payment.
- b. Determine the cost of the 3 points.
- c. Determine 28% of the Nejems’ adjusted monthly income.
- d. Determine the monthly payment for principal and interest.
- e. Determine their total monthly house payment including insurance and taxes.
- f. Do the Nejems qualify for the loan?
- g. Determine how much of the first mortgage payment is applied to the principal.
- h.

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# Chapter 10 Solutions

A Survey of Mathematics with Applications (10th Edition) - Standalone book

# Additional Math Textbook Solutions

Calculus for Business, Economics, Life Sciences, and Social Sciences (13th Edition)

Mathematics with Applications In the Management, Natural and Social Sciences (11th Edition)

Mathematics for Elementary Teachers with Activities (5th Edition)

Thinking Mathematically (6th Edition)

Excursions in Modern Mathematics (9th Edition)

Calculus for Business, Economics, Life Sciences, and Social Sciences (14th Edition)

- College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning