Homer and Marge have just relocated to Springfield, and they are looking to purchase a home...
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Homer and Marge have just relocated to Springfield, and they are looking to purchase a home in the next few months. They have come into Naitlab Financial today for a mortgage pre-qualification. Through conversation, they have provided you with the following information: Homer's company has transferred him to the Springfield location. He has a letter from his employer that shows that his income is $120,000/year and he has been with the company for 10 years. Marge is a stay-at-home parent to their 3 children. They have the following monthly payments: Vehicle loan $650, credit cards $300. They have sold their previous home and have enough for a 20% down payment. Assumptions: Tax $250 Heat $150 Mortgage terms: 5.25% stress test rate, 25-year amortization Questions: 1. What is the amount of the monthly mortgage payment they qualify for? Number 2. What is the total mortgage amount they qualify for? Number 3. Since they are prepared for a 20% down payment, what is the maximum purchase price that they qualify for? Number 4. How much is their down payment? Number Homer and Marge have just relocated to Springfield, and they are looking to purchase a home in the next few months. They have come into Naitlab Financial today for a mortgage pre-qualification. Through conversation, they have provided you with the following information: Homer's company has transferred him to the Springfield location. He has a letter from his employer that shows that his income is $120,000/year and he has been with the company for 10 years. Marge is a stay-at-home parent to their 3 children. They have the following monthly payments: Vehicle loan $650, credit cards $300. They have sold their previous home and have enough for a 20% down payment. Assumptions: Tax $250 Heat $150 Mortgage terms: 5.25% stress test rate, 25-year amortization Questions: 1. What is the amount of the monthly mortgage payment they qualify for? Number 2. What is the total mortgage amount they qualify for? Number 3. Since they are prepared for a 20% down payment, what is the maximum purchase price that they qualify for? Number 4. How much is their down payment? Number
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Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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