A. You are purchasing a business building valued at $225,000. You can find a mortgage at 5% if you can put 20% down. You believe your business can support a $1,000 a month mortgage payment (not including taxes and insurance). Should you select a 25 year mortgage or a 30 year mortgage? Tell your reasons.
B. If your yearly taxes for the building will be $2,500 and the insurance for the building will be $1,900 per year, what will the total of the PITI for the mortgage be?
C. Compute what the unpaid principal balance will be after you've made three payments on the mortgage.
D. What will the new annual taxes on the property be if the assessed valuation is 60% of purchase price and the new tax rate is 1.90 per $100 of assessed valuation?