FREE Trial

Based on the following information, what rate will be used to qualify this customer for the mortgage they desire? Your

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

  1. Based on the following information, what rate will be used to qualify this customer for the mortgage they desire?

Your client is selling their existing home and paying out the remaining $100,000 balance on the existing open mortgage. This mortgage is at 3.8%

The new home is valued at $450,000 and will have a $200,000 mortgage.

They have accepted a 5-year mortgage rate. The posted rate is 4.79% but the lender is offering them a discounted rate of 2.60%. What will the rate be for qualifying this client?

Expert Answer:

Answer rating: 100% (QA)

To determine the rate that will be used to qualify this customer for the mortg View the full answer


answer-question
Related Book For  answer-question
Advanced Accounting

Advanced Accounting

ISBN: 978-1118037911

1st Canadian Edition

Authors: Gail Fayerman

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: September 04, 2023 07:53:04
See More Questions

Students also viewed these corporate finance questions

Q:
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
A:
phase 1 Doesn t everyone At fourteen I began working at Crazy Eddie as a stock boy in 1971 I started off by stealing cash and inflating insurance loss claims This was how the firm operated and I never......
Q:
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
A:
Answer 12 A A bond s coupon rate sometimes abbreviated simply to coupon isn t affected by its price B However the coupon rate influences the bond s price by influencing the bond s competitiveness and......
Q:
Hyten Corporation On June 5, 1998, a meeting was held at Hyten Corporation, between Bill Knapp, Director of Marketing/Sales, and John Rich, director of engineering. The purpose of the meeting was to...
A:
1 provide a prioritized list of barriers to......
Q:
Cherokee Company had an accounts receivable balance of $16,000 on December 31, 2013. Projected sales for the first three months of 2014 are: January $120,000 February 130,000 March 100,000 All sales...
A:
Preparation of Budget Cash collections for Cherokee Company Particulars Sa......
Q:
Jill Nicholas is concerned about BackPacks corporate image and has decided against using hires and fires. Instead, she has asked you to consider a chase aggregate plan using the current workforce...
A:
a Period 1 2 3 4 5 6 Production hours required 33600 28800 47040 31200 39360 21600 b Amount of regul......
Q:
Allow the motion in the preceding problem to take place in a resisting medium. After oscillating for 10s, the maximum amplitude decreases to half the initial value. Calculate (a) The damping...
A:
a The statement that at a certain time t t the maximum amplitude has decreased to one......
Q:
Write the definition of equilibrium in terms of the general rate laws Rate forward rxn = kforward rxn [Reactants]order and Rate reverse rxn = Kreverse rxn[Products Jorder
A:
The equilibrium in terms of the general rate laws is defined as the......
Q:
Abe Factor opened a new accounting practice called X-factor Accounting and completed these activities during March 2014: Mar 1 Invested $50,000 in cash and office equipment that had a fair value of...
A:
General Journal Page 1 Date Account Titles and Explanations PR Debit Credit 2014 Mar 1 Cash 101 50 0......
Q:
Jalen is a 9th grade student with a significant cognitive impairment. He is ambulatory and appears to have vision and hearing within normal limits. He communicates using mostly one and two word...
A:
Goal for the Annual IEP Individualized Education Program Jalen will be able to independently manage......
Q:
It is the end of 2019, and you have been asked to create financial statements for the year. Your manager has given you the trial balance on the left.
A:
Click to View...
Q:
There are two types of independence: Independence of mind and Independence in appearance. Which one is preferable and why? Justify your answer.
A:
Both are equally important and are used together to ensure complete independ......
Q:
Explain the principle behind the finite difference method.
A:
The finite difference method FDM is a numerical technique for approximating the solutions of differential equations It is based on the idea of discret......
Q:
The time constants in an unsteady catalytic tubular reactor may be very different for different phenomena. The concentration may change in seconds, the temperature in minutes, and the catalyst...
A:
That s correct The time constants in an unsteady catalytic tubular reactor can vary significantly de......
Q:
How can error tolerance be ensured when a true solution does not exist when solving differential equations?
A:
Error tolerance in solving differential equations especially when......
Q:
What are the maximum number of symmetry planes in a cube, cylinder, and sphere?
A:
The maximum number of symmetry planes for geometric shapes depends on their inherent symmetry Here a......
Q:
Why are the net mass and heat transfer through a symmetry boundary condition zero?
A:
A symmetry boundary condition implies that the physical system is symmetric with respect to the spec......
Q:
Tamara Quist is a 36-year-old Canadian citizen, and the only daughter of Bob and Linda Quist. Tamara is the president and sole owner of all 100 common shares of Quist Tires (QT), a successful...
A:
Answer Residential status Since QT is made and situated in Canada and a retailer successfully located in North Canada it s a resident of Canada as per the common law Tax consequences As it may be a Ca......
Q:
A spacecraft has left the earth and is moving toward Mars. An observer on the earth finds that, relative to measurements made when the spacecraft was at rest, its a. length is shorter b. KE is less...
A:
Explanation Identify assets and their values Understanding the value of an asset is th......
Q:
John "Calc" Gossling is one of Canada's foremost real estate investment analysts. He works for the firm of Bouchard Wiener Securities Inc. (BWS). His job is to do research and make recommendations on...
A:
DRAFT REPORT TO LEGAL COUNSEL Overview Terms of Reference This report provides our assessment of the validity of the positions put forward by Mr John Gossling an employee of Bouchard Wiener Securities......
Q:
Investco Ltd. is a Canadian real estate and property developer that decided to hold a parcel of land in downtown Munich, Germany, for speculative purposes. The land, costing 12 million, was financed...
A:
a 1 The German subsidiary s functional currency is the Canadian dollar a 2 The German subsidiary s f......
Q:
Berke Company purchased equipment from Norway for 140,000 krones (NOK) on December 16, 2013, with payment due on February 14, 2014. On December 16, 2013, Berke also acquired a 60-day forward contract...
A:
a The journal entries from December 16 2013 to February 14 2014 December 16 2013 Dr Equipment 26 180......
Raising Money Smart Kids What They Need To Know About Money And How To Tell Them 1st Edition - ISBN: 1419505165 - Free Book