Question: James is purchasing a house whose sell price is $550,000. He will be applying for a mortgage from a local bank. The LTV of his

James is purchasing a house whose sell price is $550,000. He will be applying for a mortgage from a local bank. The LTV of his loan 90%. He calculated that his monthly housing payment (principal, interest, property tax, and heating bill) would be $2,894.

What is the amount he needs to show in his bank account including downpayment, closing cost, and reserves for a smooth mortgage loan approval?

Step by Step Solution

★★★★★

3.46 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To determine the amount James needs to show in his bank account for a smooth mortgage loan approval ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Juan sold IBM stock to Richard for a $ 10,000 loss. Richard is the husband of Juans sister, Carla. How much of the loss can Juan deduct in the current year if Juans taxable income is $ 55,000 and he...

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

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...

1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...

James is purchasing a house whose sell price is $550,000. He will be applying for a mortgage from a local bank. The LTV of his loan 90%. He calculated that his monthly housing payment (principal,...

Question 1 1 pts A biweekly mortgage: Group of answer choices has one rate adjustment after a set period, such as five years increases at regular intervals, with the increased payments used to pay...

Scenario: James is purchasing a house that has a selling price is $ 6 5 0 , 0 0 0 . He will be applying for a mortgage from a local bank. He will be making a 1 0 % down - payment. He has calculated...

Need help figuring out problem #40, #42, and #45 in the attached document. I have the answers for the problems, but need to see how they are worked out. FIN 142 - Real Estate Finance Problem Set 2 1....

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...

Quantitative Analysis Estimate each propertys current value by calculating the present discounted value of expected future cash flows. The forward-looking cash flows have been provided for you in the...

In this chapter, assume the log-normal model. Unless otherwise stated, assume no arbitrage opportunities The current spot price of a stock is $36.00, the expected rate of return of the stock is 7.6%,...

Savannah's balance in her checking account was -$638.57. She deposited two checks, each in the amount of $298.40. What is Savannah's new checking account balance after the deposits?

Assignment 1: Persuasive Argument (25%) Purpose We can never overemphasize the importance of effective communication skills in the workplace. Speaking to your colleagues, supervisors, and clients...

Andrews Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Lori Bart, staff...

New Tech Corporation is a rapidly growing biotech company that has a required rate of return of 8%. It plans to build a new facility in Santa Clara County. The building will take 2 years to complete....

List and briefly describe each of the five stages in capital budgeting.

What monthly lease payment due in advance should be charged for a tract of land valued at $35 000 if the agreed interest is 8.5% compounded semi-annually?

Bernies Bears, Inc., manufactures plush toys in a facility in Cleveland, Ohio. Recently, the company designed a group of collectible resin figurines to go with the plush toy line. Management is...

In a lawsuit, the Blank______ is the party that alleges a violation of some legal right or standard.Multiple choice question.defendantappellantplaintiffappellee

Describe the three unique features of segregated funds relative to mutual funds.

What are the qualifying criteria for the Canada Pension Plan (CPP)? At what age do you become eligible to receive CPP retirement benefits?

Describe the tax treatment of a defined-benefit pension plan.

Colleen is a citizen and bona fide resident of Ireland. During the current year, she received the following income: Cash dividends of $2,000 from a U.S. corporation stock Interest of $1,000 on a...

Use the facts in problem 41. If Guido meets the statutory requirements to be considered a resident of both the United States and Belgium, what criteria does the U.S.-Belgium treaty use to "break the...

True or False. Non-subpart F income always qualifies for tax deferral until it is repatriated back to the United States. Explain.