The van dusens have a combined net annual income of $65,000. They have savings of $37,000. Non related housing expenses are $1850 a month. Option 1: Renting a 2 bedroom apartment for $1800 a month including all utlities. Option 2: Buying a bedroom townhouse with a dawn payment of $24,000, bi weekly mortgage
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The van dusens have a combined net annual income of $65,000. They have savings of $37,000. Non related housing expenses are $1850 a month.
Option 1: Renting a 2 bedroom apartment for $1800 a month including all utlities.
Option 2: Buying a bedroom townhouse with a dawn payment of $24,000, bi weekly mortgage payments of $800, annual property taxes of $2100, and a average of $175 a month for utilities.
For each option determine how much money the Van Dusens will have available each month for savings
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- Sam and Deb have a weekly net income of $1700. Their monthly expenses, not related to housing, are $2875. They have savings of $32 000. They are considering two housing options: Option 1: Renting a 2-bedroom condo for $1650 a month, plus utilities averaging $210 a month Option 2: Buying a 2-bedroom condo for a down payment of $24 500, bi-weekly mortgage payments of $1100, and a monthly condo fee of $475 a) Determine the monthly cost of each housing option. Which one can Sam and Deb afford? Which would you recommend? b) Suppose Sam’s mother falls ill and he has to pay $575 every two weeks to cover her expense. Calculate the additional monthly expenses. Based on your answer in a), would your recommendation change? ExplainJose and Rosa are looking for a condo. Their combined gross annual income is $61,000. The best mortgage rate offered by their bank is a 3.12 percent, five-year fixed rate compounded semi-annually with a 20-year amortization. The annual property taxes are estimated at $1,360, and the annual heating costs are $1,340. Their personal debt consumption is $500 per month. Condo fees are estimated at $700 per month. The bank's guideline for TDS is 30 percent. Based on this information, what is the maximum monthly mortgage payment they could afford? The maximum monthly mortgage payment they could afford is $ (Round to the nearest cent.)Donald and Alex have a combined gross monthly income of $5500. They want to buy a house in a neighborhood where the average monthly heating cost is $200 and monthly property taxes are $325. a) Calculate the maximum monthly mortgage payment they can afford, based on the gross debt service ratio. Show your work. b) Based on the maximum monthly mortgage payment in a), their bank has offered them a 25 year mortgage at an interest rate of 3.5%, compounded semi-annually. If they saved $20,000 for a down payment, what would be the maximum house price they can afford? Show your work.
- Ben and Zhang Manchester plan to buy a condominium. They will obtain a $214,000, 15-year mortgage at 7.5 percent. Their annual property taxes are expected to be $2,376. Property insurance is $1,464 a year, and the condo association fee is $270 a month. Based on these items, determine the total monthly housing payment for the Manchesters. (Exhibit 9-9) Note: Round time value factor to 2 decimal places and final answer to the nearest whole number. Total monthly housing paymentJack and Jill purchase a house and finance $375,000 at 2.8% for 30 years. Their annual insurance is $1,225 and their annual property tax is $5212. How much is their PITI payment each month? Remember, that amount includes principal, interest, property taxes and insurance. You must show the formulas with the values filled in.Rachel and Alexander Harrison need to calculate the amount they can afford to spend on their first home. They have a combined annual income of $67,500 and have $37,000 available for a down payment and closing costs. The Harrisons estimate that homeowner's insurance and property taxes will be $150 per month. They expect the mortgage lender to use a 28 percent (of monthly gross income) mortgage payment affordability ratio, to lend at an interest rate of 6 percent on a 30-year mortgage, and to require a 10 percent down payment. Based on this information, use the home affordability analysis form in Worksheet 5.3 to determine the highest-priced home the Harrisons can afford. Assume that closing costs are one-half of the down payment. Round the answer to the nearest dollar. $
- Ben and Carla Covington plan to buy a condominium. They will obtain a $224,000, 30-year mortgage at 7.0 percent. Their annual property taxes are expected to be $2,000. Property insurance is $520 a year, and the condo association fee is $240 a month. Based on these items, determine the total monthly housing payment for the Covingtons. Use Exhibit 7-7. (Round your intermediate calculations and final answer to 2 decimal places.) Total monthly housing paymentJackson and Svetlana are applying for a $600,000 mortgage to purchase a new house. The monthly payment for this proposed mortgage is $2.839.48. They have told you that they also have a car payment of $1.305 per month, annual car insurance of $1,850, an RRSP contribution of $150 per month by papall deduction a weekly loan payment of $75 and total monthly credit card payments of $320. Their property taxes are $5,884 per year. Their combined income is $155.394 per year and heat on this house is $100 per month What is their TDS? Select one: a.40.00% b. 38.07% c.41.19% d.42.35%A couple buys a $190000 home, making a down payment of 23%. The couple finances the purchase with a 15 year mortgage at an annual rate of 3.74%. Find the monthly payment. If the couple decides to increase the monthly payment to $1100, find the number of payments.
- Fatimah pays monthly rent of $520 for her townhouse. If she bought the property, the mortgage loan, property tax, and utilities would cost her $920 per month. Using the current mortgage loan rate of 6.6% compounded semi-annually, calculate how much money Fatima could accumulate over 10 years if she continues to rent and invests the $400 per month difference. $77,085 $47,845 $67,768 $56,2991. Caroline is a single parent. Her annual net income is $42 000. She has $25 000 in savings. Caroline spends $125/week on food, $400/month on transportation, $120/month on clothing, $75/2 weeks on entertainment, and $200/ month on miscellaneous expenses. Option 1: Buying a 3-bedroom townhouse Down payment of $18 000 Bi-weekly mortgage payments of $640 Monthly maintenance fees of $250 Option 2: Renting a 3-bedroom townhouse $1025 per month, plus utilities Which housing option would you recommend to Caroline? Justify your answer.Ben and Carla Covington plan to buy a condominium. They will obtain a $220,000, 30-year mortgage at 5 percent. Their annual property taxes are expected to be $1,800. Property insurance is $480 a year, and the condo association fee is $220 a month. Based on these items, determine the total monthly housing payment for the Covingtons. Use Exhibit 7-7. (Round your intermediate calculations and final answer to 2 decimal places.)