What is the required down payment? The Leungs decided to build a new house. The contractor quoted

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What is the required down payment?


The Leungs decided to build a new house. The contractor quoted them a price of $144,500, including the lot. The taxes on the house would be $3200 per year, and homeowners’ insurance would cost $450 per year. They have applied for a conventional loan from a bank. The bank is requiring a 15% down payment, and the interest rate is 10득%  with 2 points. The Leung’s annual income is $86,500. They have more than 10 monthly payments remaining on each of the following: $220 for a car, $175 for new furniture, and $210 on a college education loan. Their bank will approve a loan that has a total monthly house payment of principal, interest, property taxes, and homeowners’ insurance that is less than or equal to 28% of their adjusted monthly income.

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A Survey of Mathematics with Applications

ISBN: 978-0134112107

10th edition

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

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