A couple is currently leasing a townhouse with a monthly rent of $1,900 per month....
60.1K
Verified Solution
Link Copied!
Question
Finance
A couple is currently leasing a townhouse with a monthly rent of $1,900 per month. They have decided that they want to stay in the city where they are currently living and wish to purchase a home so that their monthly housing costs go toward something that they own.
They have identified a home that they want to purchase.
The home is listed for $285,000
Houses in the neighborhood have been selling for 93% of list price
Property taxes are estimated to be 2.2% of the value of the home
Insurance is estimated to be 0.90% of the value of the home
Homeowners Association dues are $60 per month
In the event the lender requires private mortgage insurance, the annual premium is 1.20% of the original loan amount.
Their combined gross annual income is $126,500. They also owe money on two loans:
A vehicle loan with a monthly payment of $725
A student loan with a monthly payment of $425
They want to determine if they can afford this home and how much of a down payment they need to put into the purchase of the property.
How much cash will they need if they put 15% down toward the purchase price of the property?
How much cash will they need if they put 20% down towards the purchase price of the property?
Answer & Explanation
Solved by verified expert
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!
