With a raise from his employer, an investment firm, Seyed Abdullah, 31, is inspired to look...
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With a raise from his employer, an investment firm, Seyed Abdullah, 31, is inspired to look for a new home. He has come to you for help. Financially he is fairly secure, but he is also very averse to risk. His salary is $93 000 a year, but he does not know how much he should spend on housing. His current housing expenditures include rent for his apartment of $1600 per month and tenant's insurance premiums totalling $300 per year. Although he has been paying his rent on a monthly basis, Seyed would like to convert the payment frequency of any monthly mortgage payment he takes on to accelerated biweekly. His monthly bills include a $500 per month lease payment for his 2012 Acura MDX and a $300 per month student loan payment. Seyed has rescarched the recurring costs of home ownership. He has found that property taxes and home insurance premiums for the average home in the city in which he lives are about $2400 and $450 per year, respectively. He is unsure of the maintenance and heating costs but estimates them at S1000 and S1300 per year, respectively. Given how busy he is at work, Scyed thinks that a high-end condo might best suit his lifestyle. The condo fees associated with such a property woukd be approximately $400 per month. Seyed likes the idea of owning his own home because as the real estate vakues increase, the value of his home will increase. Local property values have been increasing at 5 percent per year over the past seven years. One concern about buying a home is the immediate cost of down payment and eosing costs. These closing costs, he has found, come to about $5000, He also knows that he woukl want to make a 20 percent downpayment. Seyed's bank will use a maximum TDS ratio of 40 percent to qualify him for a mortgage. In addition, the posted five-year mortgage rate is 5.35 percent, compounded semi-annually. List and describe four types of housing that Seyed should consider. Using the information provided in the case, determine the maximum mortgage payment that Seyed would qualify for. What would be the accelerated biweekly payment on his mortgage? At an amortization period of 25 years, what is the maximum mortgage amount that Seyed would qualify for? If Seyed would like to make a 20-percent down payment, what is the maximum value of the home that he would qualify for? Including maintenance, closing costs, and his required down payment, how much money does Seyed need to set asile? With a raise from his employer, an investment firm, Seyed Abdullah, 31, is inspired to look for a new home. He has come to you for help. Financially he is fairly secure, but he is also very averse to risk. His salary is $93 000 a year, but he does not know how much he should spend on housing. His current housing expenditures include rent for his apartment of $1600 per month and tenant's insurance premiums totalling $300 per year. Although he has been paying his rent on a monthly basis, Seyed would like to convert the payment frequency of any monthly mortgage payment he takes on to accelerated biweekly. His monthly bills include a $500 per month lease payment for his 2012 Acura MDX and a $300 per month student loan payment. Seyed has rescarched the recurring costs of home ownership. He has found that property taxes and home insurance premiums for the average home in the city in which he lives are about $2400 and $450 per year, respectively. He is unsure of the maintenance and heating costs but estimates them at S1000 and S1300 per year, respectively. Given how busy he is at work, Scyed thinks that a high-end condo might best suit his lifestyle. The condo fees associated with such a property woukd be approximately $400 per month. Seyed likes the idea of owning his own home because as the real estate vakues increase, the value of his home will increase. Local property values have been increasing at 5 percent per year over the past seven years. One concern about buying a home is the immediate cost of down payment and eosing costs. These closing costs, he has found, come to about $5000, He also knows that he woukl want to make a 20 percent downpayment. Seyed's bank will use a maximum TDS ratio of 40 percent to qualify him for a mortgage. In addition, the posted five-year mortgage rate is 5.35 percent, compounded semi-annually. List and describe four types of housing that Seyed should consider. Using the information provided in the case, determine the maximum mortgage payment that Seyed would qualify for. What would be the accelerated biweekly payment on his mortgage? At an amortization period of 25 years, what is the maximum mortgage amount that Seyed would qualify for? If Seyed would like to make a 20-percent down payment, what is the maximum value of the home that he would qualify for? Including maintenance, closing costs, and his required down payment, how much money does Seyed need to set asile?
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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