Joe meets with the loan officer at his bank where the process of buying a home

Joe meets with the loan officer at his bank where the

This preview shows page 3 - 6 out of 15 pages.

what he believes is the perfect first home. Joe meets with the loan officer at his bank where the process of buying a home is started. The loan officer provides Joe with a great deal of information, leaving him excited and apprehensive at the same time.
Image of page 3

Subscribe to view the full document.

What you know: · The purchase price of the house is $75,000. · Joe has $10,000 in savings. · Joe makes $15 per hour and works 40 hours per week. · 30-year mortgage interest rate of 6.25% and a monthly payment of $439.00 · 15-year mortgage interest rate of 5.25% and a monthly payment of $575.00 · Down payment: 5% minimum · Taxes last year were $375. · Insurance is $250 per year. What you are looking for:
Image of page 4
1. Can Joe afford the monthly payments with taxes and insurance for either a 30 or 15 year mortgage? 2. If Joe buys the house, will he have enough money left over on a monthly basis to live comfortably? 3. Does Joe have enough in savings to pay for the down payment and all of the closing costs? Solution Plan: Complete the following questions based upon the information in the video and other information provided in the worksheet. 1. Joe figures that with overtime he will average 40 hours a week for 52 weeks a year. If his current wage is $15.00 per hour, how much will he make per year?
Image of page 5

Subscribe to view the full document.

Image of page 6
  • Spring '16
  • Harry Purcell

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes