CARLIN: Has been renting a two-bedroom apartment with her husband and 3 kids; wants to...

  

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CARLIN: • Has been renting a two-bedroom apartment with her husband and 3 kids; wants to move into a three-bedroom home instead • Took her five years, but she has saved $20,000 for a down payment • Homes in her small town are typically selling for $75,000 to $95,000 • Is preapproved for a 6.98% interest rate on a 30-year fixed mortgage Needs her monthly payment to be less than $550 ● 4. Rounded to the nearest $500, what's the most expensive house Carlin could buy? 5. How much total interest will she pay over the course of the mortgage for this house? 6. What month and year does Carlin pay off her house? 7. If Carlin could add just $50 to each monthly payment, how much money would she save on interest? 8. What are some strategies Carlin could use to make sure she has an extra $50/month for her mortgage? 9. If Carlin can afford $550 per month, she could have just bought a more expensive house. Do you think she should pay off an expensive house in 30 years? Or, should she pay off a cheaper house in less time with less interest? Explain why you feel that way. CARLIN: • Has been renting a two-bedroom apartment with her husband and 3 kids; wants to move into a three-bedroom home instead • Took her five years, but she has saved $20,000 for a down payment • Homes in her small town are typically selling for $75,000 to $95,000 • Is preapproved for a 6.98% interest rate on a 30-year fixed mortgage Needs her monthly payment to be less than $550 ● 4. Rounded to the nearest $500, what's the most expensive house Carlin could buy? 5. How much total interest will she pay over the course of the mortgage for this house? 6. What month and year does Carlin pay off her house? 7. If Carlin could add just $50 to each monthly payment, how much money would she save on interest? 8. What are some strategies Carlin could use to make sure she has an extra $50/month for her mortgage? 9. If Carlin can afford $550 per month, she could have just bought a more expensive house. Do you think she should pay off an expensive house in 30 years? Or, should she pay off a cheaper house in less time with less interest? Explain why you feel that way.

Answer rating: 100% (QA)

4 To determine the most expensive house Carlin could buy we need to calculate the maximum monthly mortgage payment she can afford based on her preappr... View the full answer