Tom and Nancy want to buy a house in a particular neighborhood. they have two children ages 1 and 4. The average price home in this neighborhood runs about $350,000. Together their family income is $100,000. They have saved $75,000. The home they want to purchase costs $300,000. Taxes on the home run $3.00 per $100 of the assessed value of the home. For new homes, the assessed value is equal to 75% of the purchase price. Insurance runs half of one percent of the purchase price of the home. An Adjustable Rate Mortgage (ARM) requires a 10% down payment. Conventional loans require a 20% down payment. Interest for an ARM currently is 4.5 %. The conventional loans are 5.25% today. Compute the per month cost including interest, taxes, and insurance (use the above formula to get the taxes and insurance cost) for an ARM. 

What will their down payment be? ____________________________________ What will the cost of insurance be per month? ________________________ What will their taxes be per month?____________________________________ What will their principal and interest be per month?__________________ What is their total monthly payment going to be including everything?____________________

Answer rating: 100% (QA)

What will their down payment be Down payment 20 of the purchasing price 02x... View the full answer