Your annual income is $75,000 and you have $53,000 cash to cover down payment and closing cost of buying a house. You are looking at a house priced at $300,000 with monthly real estate tax and insurance cost amounting to $375. The lender will accept a down payment of 15% and the mortgage rate is 5%. The estimated closing cost is $6500. You have no other debt. Given the costs associated with the purchase of this house, mortgage rate, will you be able to take a 30-year mortgage to finance the purchase of this house with your income?

Q: You want to buy a house that costs $100,000. You have $10,000 for a down payment, but your credit is…

A: Mortgage is long-term amortized loan which is used to buy fixed assets, generally houses. Mortgages…

Q: rent

A: Cost of the property refers to the expense which includes the purchase price of an asset and its…

Q: Mr. and Mrs. Murthy have a totally monthly gross income of $6000.00. They are interested in…

A: GDSR is a metric that measures housing costs as a proportion of the gross income of the borrower.

Q: The Nicols are buying a house selling for ​$445,000. They pay a down payment of ​$45,000 from the…

A: Given Information: Cost of the house is $445,000 Down payment is $45,000 Mortgage term is 15 years…

Q: e net price. Your buyer also need to pay the monthly amortization of 34,950 for 5 years.How much was…

A: Amortization is the allocation of the cost of an intangible asset over its life. The maximum life of…

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…

Q: - Simionie needs $7000 to buy a snowmobile, but only has $6000. His bank offers a GIC that pays an…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: You currently pay $10,000 per year in rent to a landlord for a $100,000 house, which you are…

A: Given Information: Two options are given rent or buying a house: Rent - $10,000 Buying option -…

Q: Suppose you take out a 30-year mortgage for a house that costs $303,023. Assume the following: The…

A: A mortgage is a loan taken that has to be repaid in equal periodic installments. The monthly amount…

Q: The cost to purchase the house the Bainters are considering is $195,000 but the Bainters plan to…

A: A mortgage is a type of loan where the collateral is a property currently used by the borrower.…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: You are interested in buying a house worth P1,200,000. You paid P250,000 as down payment. In order…

A: Here, Note: As payment period is not given in the question, we are assuming it as yearly payments…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: Balloon payment calculation:

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Amount to be financed = Cost of house - Down payment = $415,000 - ($415,000*20%) = $332,000 Nos of…

Q: You are thinking about buying a house.You find one you like that costs $200,000. You learn that your…

A: Opportunity cost is the cost that has been sacrificed by choosing an alternative among two by the…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: 1)  Loan Amount = 80% of 415,000 = $332,000.

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: PV of annuity: For any given period, the present value (PV) formula would calculate the present…

Q: You currently pay $10,000 per year in rent to a landlord for a $100,000 house, which you are…

A: The question is based on the concept of financial decisions regarding buying or renting a property.…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Amount to be financed = Cost of house - Down payment = $415,000 - ($415,000*20%) = $332,000 Nos of…

Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: The Fritzes are buying a house that sells for ​$163,000. The bank is requiring a minimum down…

A: Downpayment is the amount paid in advance on the purchase of any asset or property. Formula is…

Q: You are considering buying a new car worth $I5,000. You can finance the car either by withdrawing…

A: The present worth an investment is based on the time value of money concept. The present value of…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: The question is based on the concept of Loan and mortgages

Q: vould like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the…

A: Balloon payment is one time payment made at the end of period to pay the remaining amount of the…

Q: Jim has an annual income of $300,000. Jim is looking to buy a house that has monthly property taxes…

A: Here,

Q: The annual income of a borrower is $74,000.00. What is the maximum dollar amount he can borrow to…

A: Maximum amount to borrow = Remaining balance for monthly payments/ current mortgage rate

Q: he Nicols are buying a house selling for ​$435,000. They pay a down payment of ​$35,000 from the…

A: Data given: Cost of house = $435,000 Down payment= $35,000   Required: Amount of the​ mortgage= ?

Q: Suppose that 10 years ago you bought a home for $160,000, paying 10% as a down payment, and…

A: A mortgage is a loan on a property where the collateral to the loan is the property itself.

Q: Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Suppose that you wish to buy a new home that will cost you $476,301. You must put $80,000 down, and…

A: Negative amortization is where the principal to be paid increases due to non payment of interest due…

Q: Your parents buy a new house to downsize. They pay $250,000 and are planning on paying it off in a…

A: Let interest rate implicit in loan = i Present value of installment at i = $250,000 $19,167 *…

Q: Jose and Rosa are looking for a condo. Their combined gross annual income is $61,000. The best…

A: Gross Income = $61,000 Interest rate = 3.12% compounded semi-annual Time Period = 20 Years Annual…

Q: Will they get the home loan? You have a gross annual income of $175,000 and have been pre-approved…

A: Back-End ratio shows proportion of monthly income used to pay off debt. Back End Ratio=Monthly Debt…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: For the calculation I have used the above given formula and got the monthly payment to be…

Q: A buyer earns $48,000 salary per year. In order to qualify for an 85 percent loan, his monthly PITI…

A: Introduction = Every person needs loan to buy his house, to run his business, education loan etc.…

Q: You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 31-year…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…

A: Here,

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: Question is based on the concept of Mortgages

Q: Suppose you purchase an automobile for a selling price of $1,600,000.  You make a down payment of 5%…

A: The total cost of an automobile includes the selling price of an automobile, sales tax, and license…

Q: You are considering buying a new car worth $I5,000. You can finance the car either by withdrawing…

A: Given, Data 1: Price of car is $15,000. Buying of the car by withdrawing the amount from saving…

Q: How much downpayment should you put at the time of purchase? how would i calculate this in excel?

A: Downpayment: It refers to the amount of money paid by the buyer in the early phase of purchasing…

Q: You are buying your first house for $220,000 and are paying $30,000 as a down payment. You have…

A: Answer) Calculation of monthly payment Installments are to be paid monthly Amount Borrowed…

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: Interest rate charged is calculated by RATE function in excel. Commission from car dealer is paid on…

Q: For your loan, there are 180 payments remaining, the outstanding balance is $350,000, the mortgage…

A: "Since you have posted multiple questions, we have solved the first question for you. To get it…

Q: McBertys have $20,000 in savings to use as a down payment on a new home. They also have determined…

A: Given,  Down payment is $20,000 Payment is $1500 to $1800 Rate is 11% Term of loan is 30 years

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.