The Jacksons are considering selling their current residence, buying a small home near Averys parents for $220,000
Fantastic news! We've Found the answer you've been seeking!
Question:
The Jacksons are considering selling their current residence, buying a small home near Avery’s parents for $220,000 with a $100,000 30-year mortgage at 3.5%, and investing the net proceeds in their retirement accounts and education accounts. They assume they will incur 2% in transaction costs for the purchase and 6% for the sale. They have asked you the following:
- What will be their payment (principal and interest only) on their new home?
- How much will they be able to invest in their retirement accounts and education accounts after selling the old house and buying the new house?
- If the Jacksons purchase the new house one year from today, what will be the balance on their mortgage when they retire?
- What are the income tax consequence of their sale and purchase strategy?
Related Book For
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann , David Anderson, Dennis Sweeney, Thomas Williams
Posted Date: