Question: John and Mary have been working for two years and are interested in purchasing their first home. John earns $45,000 per year and Mary earns

John and Mary have been working for two years and are interested in purchasing their first home. John earns $45,000 per year and Mary earns $35,000 annually. They want to buy a home for $300,000. John and Mary obtain a 30-year fixed-rate loan at 5%, and make a 25% down payment. Neither of them has served in the military. Other costs include: monthly car payment, $695; annual homeowners insurance, $900; annual property taxes, $6,000; and monthly student loan, $425.

What is the amount of their mortgage loan?

Multiple Choice

a. $35,000

b. $300,000

c. $75,000

d. $80,000

e. $225,000

$45,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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!

Locate the centroid y of the area. 2. x- 4 in. -8 in.-

Bob and Jane have been working for two years and are interested in purchasing their first home. Bob earns $50,000 per year and Jane earns $40,000 annually. They want to buy a home for $310,000. Bob...

Please, I need help with the calculations for the following 25 problems in the "final" tab of the workbook before 9pm CST. FINC 340 Quizzes 1 2 Derivatives can be strictly defined as Financial...

Averell Cabinetry Case Overview This case is presented as close as possible to the way you may encounter it in working life. Your role is that of a newly hired HR manager. You will learn about the...

Elaine wants to know how much she and Archie need to contribute over the next 15 years for Kelsey's education. Their first contribution will be in ine year, and they will invest in a portfolio that...

I need Chapter 2 & 3 finished. Chapter 4 & 5, Chapter 6 & 7, & Chapter 8. Some of this is completed, but it isn't 100% finished. Let me know if you can get to it. Personal Finance, Fifth Edition by...

Pacific Systems Elcom Sure Tech E-Drive Park Current Ratio 1.2 1.3 1.3 1.1 Inventory Turnover 5.2 5.4 9 7 Long-Term Debt Ratio to Assets 0.25 0.15 0.17 0.4 Receivable Days 49 29 59 40 Payable Days...

Retirement Planning Final Exam (Chapters 2 14) Which of the following is an example of a qualified retirement plan?Rabbi trust.401(k) plan.Nonqualified stock option plan.ESPP. John has been employed...

Hi. I need Chapter 11 part 1-4 Let me know. Thanks! (it wont letme add more than $8, but I will give $12+ tip) Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK...

What do the Peytons need to do now to meet their retirement income goal? They do not want to consider Social Security benefits in their retirement planning. (All info provided in images) Person...

CASE 03 Whole Foods Market in 2014: Vision, Core Values, and Strategy Arthur A. Thompson The University of Alabama ounded in 1980, Whole Foods Market had evolved from a local supermarket for natural...

1. Find the current in the circuit shown in Fig. 2. Find the current in the circuit shown in Fig. 3. If the current in the circuit in Fig. is 1.20 A, what is the value of R 2 ? 4. Find the current in...

Give an example of an expression defining a materialized view and two situations (sets of statistics for the input relations and the differentials) such that incremental view maintenance is better...

e - z loans is offering a special on one year loans. the company will loan you 1 5 0 0 today with no waiting and no credit check, in exchange for one payment of 2 0 0 0 one year from now. what is the...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...