B2. Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for thfollowing situation. (Refer to Exhibk 9-8 and Exhibit 9-9)Note: Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number.Monthly gross incomeDown payment to be made (percent of purchase price)Other debt (monthly payment)Monthly estimate for property taxes and insurance30-year loanAffordable monthly mortgage paymentAffordable mortgage amountAffordable home purchase price$AffordableAmountSaved1,257Mortgage Costs$ 5,15020 Percent$ 300$ 4006.5 Percentk

It is given that Monthly Gross Income 5150 Down payment 20% Other debts 300 Monthly…

Answered: Estimate the affordable monthly…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. Use Exhibit 7-6, Exhibit 7-7. (Round your intermediate and final answers to the nearest whole dollar.) Monthly gross income Other debt (monthly payment) 25-year loan at Down payment to be made (percent of purchase price) Monthly estimate for property taxes and insurance Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase $ 3,460 $ 220 6 percent 15 percent $ 240
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9) (Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number.) Monthly gross income $6,000 Down payment to be made (percent of purchase price) Other debt (monthly payment) 10 Percent $ 310 Monthly estimate for property taxes and insurance 30-year loan $ 390 5.0 Percent Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. (Refer to Exhibit 9-8 and Exhibit 9-9.) Note: Round time value factor to 2 decimal places, intermediate and final answers to the nearest whole number. Monthly gross income Down payment to be made (percent of purchase price) Other debt (monthly payment) Monthly estimate for property taxes and insurance 30-year loan Mortgage Costs $ 4,200 10 Percent $ 250 $ 290 6.0 Percent Affordable Affordable monthly mortgage payment Affordable mortgage amount Affordable home purchase price Amount
Exhibit 9-8 Housing affordability and mortgage qualification amounts Example A Example B Step 1: Determine your monthly $48,000 - 12 $48,000 - 12 gross income (annual income divided by 12). Step 2: With a down payment of at $4,000 $4,000 least 5 percent, lenders use x 38 x 33 33 percent of monthly gross $1,520 $1,320 income as a guideline for PITI (principal, interest, taxes, and insurance) and 38 percent of monthly gross income as a guideline for Term Rate 30 Yoars 25 Yoars 20 Yoars 15 Years PITI plus other debt payments. 3.0% $4.22 $4.74 $5.55 $6.91 Step 3: Subtract other debt -380 3.5 4.49 5.01 5.80 7.15 payments (e.g., payments -300 -300 an auto loan) and an 4.0 4.77 5.28 6.06 7.40 estimate of the monthly 4.5 5.07 5.56 6.33 7.65 costs of property taxes and homeowner's insurance. 5.0 5.37 5.85 6.60 7.91 (a) Affordable monthly mortgage $ 840 $1,020 5.5 5.68 6.14 6.88 8.17 payment 6.0 6.00 6.44 7.16 8.43 Step 4: Divide this amount by the -$7.34 -$7.34 monthly mortgage payment x $1,000…
Use PMT formula on the image uploaded to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $150,000 20-year fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. ______________________________________________________________ a. The monthly payment is $________.. (Do not round until the final answer. Then round to the nearest cent as needed.) - The total interest for the loan is $_______. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) b. Fill out the loan amortization schedule for the first three months of the mortgage below. Payment Number Interest Principal Loan Balance 1 $ $ $ 2 $ $ $ 3 $ $ $ (Use the answer from part a to find these answers. Round to the…
Find the total monthly payment, including taxes and insurance, for the given mortgage loan using the table. Calculator answers might be slightly different. (Round your answers to the nearest cent.) Amount Rate Time(Years) AnnualTaxes AnnualInsurance $110,000 6% 30 $700 $360 STEP 1: Find the monthly taxes and insurance. taxes $ insurance $ STEP 2: Use the table to find the monthly payment.$ STEP 3: Add the monthly payment, taxes, and insurance.$
Find the total monthly payment, including taxes and insurance, for the given mortgage loan using the table. Calculator answers may be slightly different. (Round your answer to the nearest cent.) Amount Rate Time(Years) AnnualTaxes AnnualInsurance $183,000 5 1 2 % 15 $3000 $900
Consider a home mortgage of $17500 at a fixed APR of %6 for 15 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. Please show all work computaion explanation formulas clearly with steps
A borrower wants to know the monthly mortgage payment (P&I) for a minimum down FHA loan on a $206273 home purchase with 6.0% APR and a 30 year term. What is the principle and interest payment? round answer to nearest dollar.
Complete the following amortization chart by using Table 15.1. (Round your answers to the nearest cent.) Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $181,000 $50,000 $1,156.59 7.0% 35 I need help working this problem out. Please explain in detail.
Complete the following amortization chart by using Table 15.1. (Round your answers to the nearest cent.) Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $180,000 $40,000 7.5 % 35
Complete the following amortization chart by using Table 15.1. (Round your answers to the nearest cent.) Selling price of home Principal (loan) Payment per $1,000 Monthly mortgage payment Rate of Down payment Years interest 182,000 60,000 6.5 % 35 Σ %24 %24

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