(Use Calulator or Formula Approach) You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual...


(Use Calulator or Formula Approach)




You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000 and the bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30 year fixed rate loan. How much money will the bank loan you? How much can you offer for the house?


12. You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing<br>costs are estimated to be 4% of the loan value. You have an annual salary of $36,000, and the bank is<br>willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The<br>interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed<br>rate loan. How much money will the bank loan you? How much can you offer for the house?<br>

Extracted text: 12. You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $36,000, and the bank is willing to allow your monthly mortgage payment to be equal to 28% of your monthly income. The interest rate on the loan is 6% per year with monthly compounding (.5% per month) for a 30-year fixed rate loan. How much money will the bank loan you? How much can you offer for the house?

Jun 07, 2022
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