Kathy wants to buy a condominium selling for $95,000. The taxes on the property are$1500 per year, and homeowners' insurance is $336 per year. Kathy's gross monthly income is$4000. She has 15 monthly payments of $135 remaining on her van. The bank is requiring 20% down and is charging a 9.5% interest rate with no points. Her bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of her adjusted monthly income. (a) Determine the required down payment. (b) Determine 28% of her adjusted monthly income. (c) Determine the monthly payment of principal and interest for a 25-year loan. (d) Determine her total monthly payment, including homeowners' insurance and taxes. (e) Does Kathy qualify for the loan? (f) Determine how much of the first payment on the mortgage is applied to the principal. (g) Determine the total amount she pays for the condominium with a 25-year conventional loan. (Do not include taxes or homeowners' insurance.) (h) Determine the total interest paid for the 25-year loan.

Laurence and Amanda Booth are considering buying a house in Scarborough. Their combined gross income is $200,000. They have no savings. They just bought a car. To finance the car purchase they took a 5 year $40,000 loan at an interest rate of 6% compounded monthly. They have a furniture loan which requires a monthly payment of $900 for the next three years. Their goal is to buy a house in 3 years financed with a conventional mortgage (20% down payment). Currently property taxes are $800 per month on the type of house they are interested in. The legal, moving, and other costs are expected to be $7,000 in today’s dollars. The inflation rate is 2% per annum, and they expect their salaries to rise at a real rate of 3% per annum. House prices, property taxes, legal, moving, and other costs will increase at the inflation rate. Use the GDS ratio of 28% and TDS ratio of 38% to solve the problem in nominal terms.   a. What is the maximum they can afford to pay for a house and still qualify for…

Nona purchased a new car earlier today for $33,000. She financed the entire amount with a six-year loan that has a 6 percent interest rate (compounded monthly). a. Compute the monthly payments for the loan. Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. How much will Nona owe on the loan after she makes payments for 3 years (i.e., after 36 payments)? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ tA

Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a 15 year mortgage at 8% and 3 discount points. Kari made a deposit of $30,000 (applied to the down payment) when the sales contract was signed. Kari also has these expenses: credit report, $70; appraisal fee, $120; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $500. Find the closing costs (in $).