Home Purchase price: $350,000 You have enough cash to cover: 20% down payment + points and...

 

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Home Purchase price: $350,000 You have enough cash to cover: 20% down payment + points and fees Use the best interest rate from part 1 to get a 30-Year Fixed Rate Mortgage Number of points paid = 2 Each point purchased reduces the interest rate by .25% Loan origination rate = 1 % of home purchase price Appraisal fee: $500 Filing fee: $250 Credit report fee: $50 Provide: How much cash do you need to purchase (down payment + points and fees) the home? What would be your loan amount? Using the best interest rate (not APR) from part 1 and buying 2 points, what would be your loan interest rate? What will be your monthly mortgage? Based on: Property tax rate/yr = 1% of home purchase price Home insurance rate/yr = .5% of home purchase price Monthly car payment(s)- $300/month Credit card payments = $50/month Student loans = $400/month Prior to the lending institution agreeing to loan you the money to buy the house the bank does a PITI and Annual evaluations PITI: How much is your Annual PITI? (PITI: Principle, Interest, Taxes, Insurance) $ % of annual income Is this PITI score within the acceptable ranges for banks to make this loan? Annual Income Debt: What is your annual income debt? (Annual Income Debt: PITI + all other debt payments) $ % of annual income Is it within the acceptable range for banks to make this loan? Home Purchase price: $350,000 You have enough cash to cover: 20% down payment + points and fees Use the best interest rate from part 1 to get a 30-Year Fixed Rate Mortgage Number of points paid = 2 Each point purchased reduces the interest rate by .25% Loan origination rate = 1 % of home purchase price Appraisal fee: $500 Filing fee: $250 Credit report fee: $50 Provide: How much cash do you need to purchase (down payment + points and fees) the home? What would be your loan amount? Using the best interest rate (not APR) from part 1 and buying 2 points, what would be your loan interest rate? What will be your monthly mortgage? Based on: Property tax rate/yr = 1% of home purchase price Home insurance rate/yr = .5% of home purchase price Monthly car payment(s)- $300/month Credit card payments = $50/month Student loans = $400/month Prior to the lending institution agreeing to loan you the money to buy the house the bank does a PITI and Annual evaluations PITI: How much is your Annual PITI? (PITI: Principle, Interest, Taxes, Insurance) $ % of annual income Is this PITI score within the acceptable ranges for banks to make this loan? Annual Income Debt: What is your annual income debt? (Annual Income Debt: PITI + all other debt payments) $ % of annual income Is it within the acceptable range for banks to make this loan?

Answer rating: 100% (QA)

Solutions To calculate the required information well follow the given details step by step 1 Cash needed to purchase the home Down payment 20 of 350000 70000 Points paid 2 points 350000 7000 Each poin... View the full answer