I just need help in finding the answer for C.
Mortage points is the fees paid to the lending authority to reduce the interest rates. You pay some amount of money upfront for the reduced interest rates during the repayment period.
1 point costs 1% of the mortgage amount.
So, 2 points = 2% of the mortgage amount = 2% of 106200 = $2124
I just need help in finding the answer for C. The Fritzes are buying a house...
Please try not to answer if you are not going to answer both so that I can give my rating to someone else! Thank you!!! Suppose you take a 15-year mortgage for a house that costs $296912. Assume the following: The annual interest rate on the mortgage is 4.5%. . The bank requires a minimum down payment of 8% of the cost of the house. . The annual property tax is 1.1% of the cost of the house. The annual...
Suppose you take out a 30-year mortgage for a house that costs $292710. Assume the following: The annual interest rate on the mortgage is 3.2%. . The bank requires a minimum down payment of 10% at the time of the loan The annual property tax is 2.2% of the cost of the house. The annual homeowner's insurance is 1.1% of the cost of the house. There is no PMI · If you make the minimum down payment, what will your...
Bill and Kim Johnson are purchasing a house for $345,000.Their bank requires them to pay a 20% down payment. The current mortgage rate is 9%, and they are required to pay one point at the time of closing. Determine the total amount Bill and Kim will pay for their house, including principal, interest, down payment, and points (do not include taxes and homeowners' insurance) for the following lengths of their mortgage for the following. a) 10 years b) 20 years...
Suppose you take out a 20-year mortgage for a house that costs $368851. Assume the following: · The annual interest rate on the mortgage is 4%. . The bank requires a minimum down payment of 14% at the time of the loan. The annual property tax is 2.2% of the cost of the house. The annual homeowner's insurance is 0.6% of the cost of the house. . · The monthly PMI is $78 Your other long-term debts require payments of...
Suppose you take out a 20-year mortgage for a house that costs $472858. Assume the following: The annual interest rate on the mortgage is 4%. The bank requires a minimum down payment of 20% at the time of the loan. The annual property tax is 2.1% of the cost of the house. The annual homeowner's insurance is 1.5% of the cost of the house. The monthly PMI is $70 Your other long-term debts require payments of $899 per month. If...
Problem 2 - To offset the cost of buying a $75,000 house, a couple borrowed $12,500 from their parents at 6% nominal interest, compounded monthly. The loan from their parents is to be paid off in five years in equal monthly payments. The couple has saved $11,250. Their total down payment is therefore $12,500 + 11,250 = $23,750. The balance will be mortgaged at 9% nominal interest, compounded monthly for 30 years. Find the combined monthly payment (monthly payments to...
Just need help on C In 2016, José purchased a house for $203,200. He used the house as his personal residence. In December 2019, when the fair market value of the house was $354,700, he converted the house to rental property. If required, round your answers to the nearest dollar. a. José's basis for cost recovery for the property is $ 203,200 (Correct). b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it...
Costs associated with buying a house, condo, etc. The price of a home is $100,000. The bank requires a 20% down payment and 2 points at time of closing. The cost of the loan is financed with 30-year fixed rate mortgage at 4.5%. A. Find the required down payment B. Find the amount of the mortgage C. How must be paid for the 2 points at closing (1 point = 1% mortgage ) D. Find the Monthly payment 1. amount...
Suppose you are buying a house that cost $300,000. You make a 10% down payment and are also going to make semiannual payments for next 10 years on the balance of the loan which you are financing at 5% APR. Also, the IRS allows the tax exemption for the mortgage interest payment at the end of each year and your tax rate is 30% (i.e. Tax saving = annual interest * tax rate). Using the given information, construct the amortization...
1. The Taylors are buying a house costing $400,000. They will make a $60,000 down payment and finance the rest with a 20-year mortgage charging 5.4% interest compounded monthly. a. What is the size of each monthly payment? (Spoints) b. How much is still owing after 15 years (5 points) C. The Taylors have decided to pay $2500 per month. How many years will it take to pay off the mortgage? (7 points) d. Construct an Excel spreadsheet for the...