Please complete the following. Show your calculations and financial key inputs to earn credit. Also, please list the website used, as needed, for each question.

1. Locate a home for sale. Any online service will work. (Zillow, Realtors.com, Redfin, etc.)

What site did you use?

Zillow.com

Provide a complete address.

1148 N Gale Dr, Wisconsin Dells, WI 53965

Asking Price 69,000

2. Based on the asking price, calculate a 10% down payment. Show calculations.

1. What is the down payment?

69,000*10% = 6,900

2. How much is your loan?

69,000 – 6,900 = 62,100

3. Use a credit score of 740 and compute the monthly mortgage P&I (principle and interest) payment based on a 30 year loan. The credit score can affect the interest rate. Check carefully on loan sites to make sure you have an interest rate for at least 740. You may have to look in the additional information at the beginning or at the bottom of the websites to see what credit score they are using for the displayed rates.

1. What is the 740 rate and loan payment?

What site did you use?

Show your financial calculator inputs to receive credit.

2. How does the interest rate change and payment change if the credit score is not 740? Show your inputs.

4. Determine the monthly property taxes on the residence. You will likely find this in the listing. They may be listed as annual taxes.

What site did you use?

Show calculations.

5. Determine the monthly property insurance. You will likely find this in the listing or look online.

What site did you use?

Show calculations.

6. Since you are using only a 10% down payment, you will need to determine the monthly PMI that will be required. Use an online Private Mortgage Insurance calculator.

What site did you use?

Show your calculations.

7. What is the final PITI + PMI payment for this home?

Show calculations.

8. What is the minimum monthly income required to qualify for the loan payment assuming no other debt? Use a ratio of 31% maximum debt to income ratio.

Answer rating: 100% (QA)

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