Question: BEFORE ATTEMPTING THIS ASSIGNMENT BE SURE I THE POWER POINTS AND HE VIDEOS ON HOW TO BUY A HOUSE. Tom and Nancy want to buy

BEFORE ATTEMPTING THIS ASSIGNMENT BE SURE I THE POWER POINTS AND HE VIDEOS ON HOW TO BUY A HOUSE. Tom and Nancy want to buy a house in a particular neighborhood. they have two children ges 1 and 4. The average price home in this neighborhood runs about $350,000. Together heir 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 assessed value of the ome. For new homes the assessed value is equal to 75% of the purchase price. Insurance uns half of one percent of the purchase price of the home. An Adjustable Rate Mortgage ARM) requires a 10% down payment. Conventional loans require 20% down payment. nterest 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 above formula to et the taxes and insurance cost) for a ARM. how your work: (25 points) 1. What will their down payment be? 2. What will the cost of insurance be per month? 3. What will their taxes be per month? 4 What will their principal and interest be per month

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