FOCUS ON PERSONAL FIN.(LL)-W/CONNECT
6th Edition
ISBN: 9781260260830
Author: Kapoor
Publisher: MCG
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Chapter 5, Problem 1P
Summary Introduction
To determine: The maximum amount person S can borrow.
Expert Solution & Answer
Explanation of Solution
Computation:
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A few years ago, Michael purchased a home for $298,000. Today the home is worth $440,000. His remaining mortgage balance is $108,000. Assuming Michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow?
Your parents purchased their home 15 years ago. At the time, the house cost them $400,000, but they put 15% down on the cost when they bought it. Your parents financed their purchase over 30 years, with 5.0% fixed rate loan, with monthly payments. What is their current balance of their loan?
Booker graduated from Baruch 10 years ago and now wants to buy his first condo. He has saved enough for a $100,000 down payment and now wants to get a $400,000 mortgage to cover the cost of his new $500,000 home. His bank is offering him either a 3% 15-year mortgage or a 4% 30-year mortgage.
What would be the total amount he would have to pay for the 3% 15-year mortgage (interest and principal)? and
What would be the total amount he would have to pay for the 4% 30-year mortgage (interest and principal)?
Chapter 5 Solutions
FOCUS ON PERSONAL FIN.(LL)-W/CONNECT
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