View the step-by-step solution to:

A house was found by A and B, it owes a real estate market, costs $201,500. With an interest rate of 4.65%, they will put $22,000 down and finance...

A house was found by A and B, it owes a real estate market, costs $201,500. With an interest rate of 4.65%, they will put $22,000 down and finance the remainder with a 30 year mortgage loan.

 

a) Calculate the monthly loan payment?

b) Calculate the interest paid in the second payment?

C) They will also have the following expenses property taxes of $2,100 homeowners insurance of $1,625 and $290 mortgage insurance(in case one of them dies before the loan is repaid, a requirement of the bank) these annual amounts are paid in 12 instalments and added to the loan payment. What will A and B full monthly cast be?

d) If they can afford$1,200 per month can A and B afford this house? 

Top Answer

Given : Cost of house $201 ,500. Down payment $22 ,000 Mortgage loan $179 ,500 ( $201500 - $22000 ) Annual Rate 4.65% Period... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online