Pablo Pecard owned his home for 13 years. As such, he has paid off a significant...
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Pablo Pecard owned his home for 13 years. As such, he has paid off a significant amount of his original loan. He has also enjoyed a nice appreciation in the value of his home. Indeed, life is good. :) Pablo has now decided to take out a second mortgage in the amount of $65,000. An appraisal was required for the loan application. It is provided below. The interest rate is 6.75 %. He chose to amortize it over 15 years. Original Purchase Price: 312 Prescott Street.....$ 165,000 Current Appraisal: Estimated fair market value for the property located at 312 Prescott Street.....$285,000 8a. What do we mean by equity in a home? 8b. What was Pablo's equity in his house on the date of purchase? Show work here: Show work here: $ 8c. What is his current equity (before taking the second mortgage)? Show work here: Existing Mortgage: Original Loan: $125,000 @7.0 % for 30 years Monthly payment: $831.63 Current Mortgage Balance: $99,000 $ 8d. How much equity will he have in the house after taking out the second mortgage? $ Pablo Pecard owned his home for 13 years. As such, he has paid off a significant amount of his original loan. He has also enjoyed a nice appreciation in the value of his home. Indeed, life is good. :) Pablo has now decided to take out a second mortgage in the amount of $65,000. An appraisal was required for the loan application. It is provided below. The interest rate is 6.75 %. He chose to amortize it over 15 years. Original Purchase Price: 312 Prescott Street.....$ 165,000 Current Appraisal: Estimated fair market value for the property located at 312 Prescott Street.....$285,000 8a. What do we mean by equity in a home? 8b. What was Pablo's equity in his house on the date of purchase? Show work here: Show work here: $ 8c. What is his current equity (before taking the second mortgage)? Show work here: Existing Mortgage: Original Loan: $125,000 @7.0 % for 30 years Monthly payment: $831.63 Current Mortgage Balance: $99,000 $ 8d. How much equity will he have in the house after taking out the second mortgage? $
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8a Equity in a home refers to the difference between the current market value of the home and the ou... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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