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