Maria and Mike are purchasing their first home together in British Columbia. Their conditionaloffer of purchase has an agreed-upon purchase price of $1,000,000. They have decided to selltheir current Cando at 750,000 with a mortgage balance of 600,000 and use the sales proceeds asdown payment. They also will use $100,000 from their joint high-interest savings account astheir down payment. Considering 4% closing cost and 6% agent commission, Calculate LTV andtotal mortgage amount?

Maria and Mike are purchasing their first home together in British Columbia. Their conditionaloffer of purchase has an agreed-upon purchase price of $1,000,000. They have decided to selltheir current Cando at 750,000 with a mortgage balance of 600,000 and use the sales proceeds asdown payment. They also will use $100,000 from their joint high-interest savings account astheir down payment. Considering 4% closing cost and 6% agent commission, Calculate LTV andtotal mortgage amount?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 9FPE

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Maria and Mike are purchasing their first home together in British Columbia. Their conditional offer of purchase has an agreed-upon purchase price of $1,000,000. They have decided to sell their current Cando at 750,000 with a mortgage balance of 600,000 and use the sales proceeds as down payment. They also will use $100,000 from their joint high-interest savings account as their down payment. Considering 4% closing cost and 6% agent commission, Calculate LTV and total mortgage amount?
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