Question: please answer this question short answer is ok 1. [25 marks] Emma is purchasing a home for $575,000. She has a down payment of $35,000.

please answer this question short answer is ok

please answer this question short answer is ok 1. [25 marks] Emma

1. [25 marks] Emma is purchasing a home for $575,000. She has a down payment of $35,000. The balance will be in the form of a loan and a mortgage. The loan is with her parents in the amount of $200,000 with 1.5% interest. Her parents would like to be repaid within 10 years. The remainder will be a mortgage with the bank at 4.7%, amortized over 25 years. a. [4] Calculate Emma's bi-weekly mortgage payment to the bank. b. [4] Calculate Emma's bi-weekly mortgage payment to her parents. c. [6] For the first payment, how much is going towards paying interest and how much towards the principal? Show this for the (1) bank and (2) parents d .[2] Emma has just read an article advising that one's mortgage comprise no more than 30% of net earnings. The bank approved her mortgage on the basis that she had a total of $235,000 to put towards the purchase (her down payment plus the $200,000 from her parents) . The bank is not privy to her arrangements with her parents. Nonetheless, her biweekly "mortgage payments" are the sum of the two. How much would her annual net eamings need to be during the first 10 years of home ownership to meet the minimum threshold of 30%? e .[5] Emma was saving $400 per month towards her down payment. She eamed 3.5% compounded monthly. Assuming that there were no tax implications to her investment, how long did it take her to amass the $35,000 for her down payment

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 Accounting Questions!