A couple who wants to purchase a home with (a) What will be their monthly payments? (b) What is the total amount they will pay before they own the house outright? (c) How much interest will they pay over the life of the loan?
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- A couple who wants to purchase a home with a price of $340,000 has $100,000 for a down payment. If they can get a 25-year mortgage at 6% per year on the unpaid balance, find each of the following. (a) What will be their monthly payments? (b) What is the total amount they will pay before they own the house outright? (c) How much interest will they pay over the life of the loan? (a) Their monthly payments would be approximately $ (Do not round until the final answer. Then round to the nearest hundredth as needed.) (b) They will pay a total amount of approximately $ before they own the house outright. (Use the answer from part a to find this answer. Round to the nearest hundredth as needed.) (c) The total interest is approximately $ (Use the answer from part b to find this answer. Round to the nearest hundredth as needed.)You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year mortgage at 3.25% annual interest rate for the cost of the house after they receive a 20% down payment. At the end of the 15-years, how much total money will you have paid to Bank of America for your home? In another word how much did the $415,000.00 house really cost the couple?Mike and Jenny purchase a house for a selling price of 310,000 and need to make a 15% down payment. The remainder of the mortgage amount will be aromatized over 25 years at a rate of 3.5%/annually.Assume they will never refinance and will pay it off in the full 25 years. a)How much money will they need to borrow from the bank? b)What are their monthly payments? c)How much do they pay in total for their mortgage? d)If they could only afford to make payments of 1,200,how much would they have left to pay off their mortgage after 25 years? Please answer all subparts. I will really upvote. Thanks
- A couple wants to purchase a new house and feel that they can afford a mortgage payment of $600 a month. They are able to obtain a 30-year 7.4% mortgage (compounded monthly) but must put down 20% of the cost of the house. Assuming that they have enough savings for the down payment, how expensive a house can they afford? The couple can afford a house that costs up to $ ☐ . (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)Your parents buy a new house to downsize. They pay $250,000 and are planning on paying it off in a 15 year loan with equal annual payments of $19,167. What interest rate do you evaluate them to be paying on the loan?Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers them a mortgage at an interest rate of 3.10%, compounded semi-annually, with an amortization period of 25 years. a) What is the maximum amount of money the bank will lend them for their mortgage? Show your work. b) If they have $30,000 saved for a down payment, what is the maximum house price they can afford?
- 1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make a down payment of $40,000. The monthly payment on a 15-year mortgage will be $2,000. On a 30-year mortgage, the monthly payment will be 1,350. which of the following would you recommend? A.) 15 year option B.) 30 year option C.) They cannot afford to buy a house at this point.A young couple decide to take advantage the current first-time home buyer credit and buy a new house. With their combined income, they can afford to make a maximum of $550 monthly payment. With their credit history, they can borrow a 30-year fixed rate mortgage loan at 6.0% (mortgage loans compound monthly). What's the maximum amount they can borrow?A couple completely owns one home but is purchasing a second home for $120,000. They will put down 20% and will take out a 15-year FRM with 3% APR for the money they need to borrow. They plan on renting out the home for $1200 a month. They are planning on pocketing the extra money made over the mortgage payment. 1) How much money will they be pocketing a month? (Hint: First, determine the monthly mortgage payment, then subtract it from $1200). 2) How much interest would they save if they instead put that extra money toward the mortgage each month (Hint: Determine the total interest paid originally and the total interest paid if you made the extra payment, then subtract the two). 3) How many years does that cut off of the loan? For simplicity we’ll ignore taxes and insurance. 3. Suppose that you have taken out subsidized Stafford loans totaling $20,000 over your four years in college. Your rate is a fixed 3.86% and you will repay using a standard ten-year repayment plan. Find your…
- A woman buys a house for $325,000. She pays $20,000 down and takes out a mortgage at 6.9% on the balance. Find her monthly payment and the total amount of interest she will pay if the length of the mortgage is (a) 15 years; (b) 20 years; (c) 25 years. (d) When will half the 20-year loan be paid off? (a) For the 15-year mortgage, the woman will make monthly payments of $ (Do not round until the final answer. Then round to the nearest cent.) The total amount of interest the woman will pay is $ (Do not round until the final answer. Then round to the nearest cent.) (b) For the 20-year mortgage, the woman will make monthly payments of $ (Do not round until the final answer. Then round to the nearest cent.) The total amount of interest the woman will pay is $ (Do not round until the final answer. Then round to the nearest cent.) (c) For the 25-year mortgage, the woman will make monthly payments of $ (Do not round until the final answer. Then round to the nearest cent.) The total amount of…Gabby is planning to buy a home. She has some money for a down payment already saved. She sees a home she would like and calculates that she would need to borrow $210,000 from a bank for a 30-year period. The APR is 7.2%. What will be her total interest for the 30 years? How much total interest will Gabby pay with a 15 year mortgage? Step 1) What is the monthly payment? Step 2) What are the total payments ($) for the entirety of the loan? Step 3) What is the total interest?A couple plans to purchase a house. The bank requires a 20% down payment on the $470,000 house. The couple will finance the rest of the cost with a fixed- rate mortgage at 3% annual interest with monthly payments over 30 years. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas (a) Find the required down payment. $ (b) Find the amount of the mortgage. $0 (c) Find the monthly payment. $