Question: Use Worksheet 5 3 Jennie and Caleb McDonald need to calculate
Use Worksheet 5.3. Jennie and Caleb McDonald need to calculate the amount that they can afford to spend on their first home. They have a combined annual income of $47,500 and have $27,000 available for a down payment and closing costs. The McDonalds estimate that homeowner’s insurance and property taxes will be $250 per month. They expect the mortgage lender to use a 30 percent (of monthly gross income) mortgage payment afford-ability ratio, to lend at an interest rate of 6 percent on a 30-year mortgage, and to require a 15 percent down payment. Based on this information, use the home affordability analysis form in Worksheet 5.3 to determine the highest-priced home that the McDonalds can afford.
Answer to relevant QuestionsWhat would the monthly payments be on a $150,000 loan if the mortgage were set up as:a. A 15-year, 6 percent fixed-rate loan?b. A 30-year ARM in which the lender adds a margin of 2.5 to the index rate, which now stands at ...1. How much would the Meyers have to put down if the lender required a minimum 20 percent down payment? Could they afford it?2. Given that the Meyers want to put only $25,000 down, how much would their closing costs be? ...How the interest rate is typically set on bank credit cards?What’s the biggest source of credit card fraud? List at least five things you can do to reduce your chances of being a victim of credit card fraud.Lei sung was reviewing her credit card statement and noticed several charges that didn’t look familiar to her. Lei are unsure whether she should pay the bill in full and forget about the unfamiliar charges, or “make some ...
Post your question