Paul wants to purchase his own home. He currently lives in an apartment, and his rent is being paid by his parents. Paul’s parents have informed him that they would not pay his mortgage payments. Paul has no savings, but can save $ 400 per month. The home he desires costs $ 100,000, and his real estate broker informs him that a down payment of 20% would be required. If Paul can earn 8% on his savings, how long will it take him to accumulate the required down payment?
Answer to relevant QuestionsPaul will be able to save $ 400 per month (which can be used for mortgage payments) for the indefinite future. If Paul finances the remaining cost of the home (after making the $ 20,000 down payment) at a rate of 9% over 30 ...This month you made a mortgage payment of $ 700, of which $ 600 was an interest payment and $ 100 a payment of the loan principal. You are in the 25% marginal tax bracket. What is the tax savings as a result of this payment? Why might your advice about refinancing change in the future? What is the intent of no fault insurance? How does no fault insurance generally work? What is a disadvantage of no fault insurance? Describe the steps you would take to file a claim on your homeowner’s insurance.
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