Question: please answer all parts using excel and sho the formulas thank you so much Ann wants a mortgage to buy a house. Ann gives the

please answer all parts using excel and sho the formulas thank you so much

Ann wants a mortgage to buy a house. Ann gives the following information to the bank:

Income: $240k/year or 20k/month

Average monthly debt: $4k

Estimated monthly Taxes + Insurance: $1,200

Down-payment: $100k saved

-Anns down-payment will be $100k, she will take out a mortgage for the remainder

Ann qualifies for a 30 year FA-CPM-FRM (monthly payments & monthly compounding) with:

Annual interest rate: 7%

Income test: (28%/36%)

Collateral test: LTVplease answer all parts using excel and sho the formulas thank you 80% -B0 so much Ann wants a mortgage to buy a house. Ann gives 19*DP0

Closing costs + buy-down points: $5,000 + 1.75% of the balance at origination.

-Example: if Ann gets a $100k mortgage, she will pay $5k + $1.75k=$6.75k at origination.

1 Underwriting [ FE = Front End, BE = Back End, DTI = Debt to Income]

1.1: Fill in the spreadsheet (sheet Underwriting) for Ann.

1.2: based on the FE DTI what is the biggest payment Ann can make?

1.3: based on the BE DTI what is the biggest payment Ann can make?

1.4: based on both the FE & BE DTI what is the biggest payment Ann can make?

1.5: based on both the FE & BE DTI what is the biggest loan Ann can get?

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