3. The most I can afford to pay for my mortgage paymentis $950 a month. The bank is offering a 20 yearmortgage with an APR of 4.3%. How expensive of ahouse can I afford?4. You want to buy a $20,000 car. The most you canafford is $450 a month. The bank offers 3 choices fora loan: 4 years with 7% APR, 5 year with 7.5% APR,or a 6 year loan with 8% APR. Which option bestserves your needs if you want to pay the least amountof interest?5. Suppose you have graduated from college and want topurchase a home. Your take-home salary is $4560 amonth, and you wish to stay within the recommendedguidelines for mortgage amounts by only spending %of your monthly take home pay on a house payment.You have $18,500 saved for a downpayment. Withgood credit, you can get a 15 year mortgage with a4.35% APR.a. What is the total cost of the house you couldafford?b. If this switched to a 30 year mortgage, what is themost you could afford to purchase?

Information Provided: Monthly payment = $950 Interest rate = 4.30% Period = 20 years NOTE: As…

Answered: 3. The most I can afford to pay for my…

3. The most I can afford to pay for my mortgage payment is $950 a month. The bank is offering a 20 year mortgage with an APR of 4.3%. How expensive of a house can I afford?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Factors Affecting Housing Decision

Question

3. The most I can afford to pay for my mortgage payment
is $950 a month. The bank is offering a 20 year
mortgage with an APR of 4.3%. How expensive of a
house can I afford?
4. You want to buy a $20,000 car. The most you can
afford is $450 a month. The bank offers 3 choices for
a loan: 4 years with 7% APR, 5 year with 7.5% APR,
or a 6 year loan with 8% APR. Which option best
serves your needs if you want to pay the least amount
of interest?
5. Suppose you have graduated from college and want to
purchase a home. Your take-home salary is $4560 a
month, and you wish to stay within the recommended
guidelines for mortgage amounts by only spending %
of your monthly take home pay on a house payment.
You have $18,500 saved for a downpayment. With
good credit, you can get a 15 year mortgage with a
4.35% APR.
a. What is the total cost of the house you could
afford?
b. If this switched to a 30 year mortgage, what is the
most you could afford to purchase?

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Your credit score is in the range of 720-739 and you want to buy a house in Davis (CA). You have a 20% down payment to put on a house that has a market value of $450,000. If APR = 4.173% for your 30-year fixed mortgage, accordingly calculate your annual payment.
You are thinking of purchasing a house. The house costs $354,000. You have $45,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 25-year mortgage that requires annual payments and has an interest rate of 6% per year. What will be your annual payment if you sign this mortgage?
5. In the spring of 2022, you and your family were looking for the house of your dreams. Given your household income and your expenses, you determined that you could afford to pay $1,650 for a monthly house payment. As of April 2022, it looked like you could get a 30-year mortgage rate of 3.6%. 3 a) Given the above information, what is the maximum amount you could finance for your dream home? als (sun elas Sumbawod vlast b) You got busy and didn't find the right home and now it is spring 2024 and you are looking at homes again. The good news is that there are more homes available for sale, but the bad news is that mortgage rates have gone up because of inflation. Assuming that you can get a rate of 7.44% APR for a 30-year mortgage and further assuming that you can still afford to pay $1,650 per month, what is ghibruo the highest amount you can now finance on a home? all have a total pay
You own a home that was recently appraised for $370,000. The balance on your existing mortgage is $129,350. If your bank is willing to loan up to 70% of the appraised value, what is the potential amount (in $) of credit available on a home equity loan? 2$
13) Some financial advisors recommend that your monthly mortgage payment be no higher than 28% of your monthly net income. What is 28% of your monthly net income, as determined in question twelve? This is the estimated amount you can afford per month for a mortgage. 4,518*0.28 $1,265 28% of my monthly net income is $1,265. 14) We can calculate how much of a house you can afford using the loan formula. In question thirteen, you determined the monthly mortgage payment you can afford. Using this value for the regular monthly payment, calculate the present value (P), assuming you receive a 30-year mortgage (loan) with an annual interest rate of 6.328% with monthly compounding. (Note: This rate is realistic for a mortgage initiated in January 2024.) I need to use Loan formula to find the present value (P). please help me
Your friend is currently paying $734 in rent monthly in Fort Wayne and would rather apply the payment toward purchasing a home. If she can get a 30 year mortgage at 4.67% APR using her current payment amount, how much could she borrow? What could you type into Excel to calculate this value?
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You have saved $25,000 for a down payment on a house and can afford $1100 per month in payments. If the current interest rates on a 30-year mortgages are 9% annually, what is the most expensive house you can afford?
You've been house shopping and aren't sure how big a mortgage loan you can afford. You figure you can handle monthly mortgage payments of $1,058 and you can get a 15 year loan at 3.12%. How big of a mortgage can you afford?

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