14. You want to buy your first home and the bank officer says that the monthly...

80.2K

Verified Solution

Question

Finance

14. You want to buy your first home and the bank officer saysthat the monthly mortgage payment can be up to a maximum of 40% ofyour monthly household gross income (monthly). Your household grossincome is $85,000/year. According to this bank officer, what isyour maximum monthly mortgage payment from this bank?
17. You purchased your condo for $220,000 5 years ago. Thecurrent market value is $300,000. You still owe $165,000 on themortgage. If you can borrow up to 85% of the market value, what isthe maximum amount you can borrow? SHOW all work please!
19. You would like to purchase a townhouse but would need toborrow $250,000 at 4% interest on a 30-year loan. The estimatedannual property taxes would be $1600 and the estimated homeinsurance would be $800 annually. The townhouse association feeeach month is $600. a) What is the monthly payment on principal andinterest (just the mortgage payment)? Show all work for fullcredit.
b) Given all monthly expenses, what is the total monthly cost ofthe townhouse? Show all the work

Answer & Explanation Solved by verified expert

4.0 Ratings (523 Votes)

14 first we calculate monthly household gross income as 8500012 708333 maximum monthly mortgage payment monthly household gross incomemaximum monthly mortgage payment rate maximum monthly mortgage payment 70833340 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

14. You want to buy your first home and the bank officer saysthat the monthly mortgage payment can be up to a maximum of 40% ofyour monthly household gross income (monthly). Your household grossincome is $85,000/year. According to this bank officer, what isyour maximum monthly mortgage payment from this bank?17. You purchased your condo for $220,000 5 years ago. Thecurrent market value is $300,000. You still owe $165,000 on themortgage. If you can borrow up to 85% of the market value, what isthe maximum amount you can borrow? SHOW all work please!19. You would like to purchase a townhouse but would need toborrow $250,000 at 4% interest on a 30-year loan. The estimatedannual property taxes would be $1600 and the estimated homeinsurance would be $800 annually. The townhouse association feeeach month is $600. a) What is the monthly payment on principal andinterest (just the mortgage payment)? Show all work for fullcredit.b) Given all monthly expenses, what is the total monthly cost ofthe townhouse? Show all the work