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# 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?

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

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