Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a. denny and janice (and their dog chewy) have jus

a. Denny and Janice (and their dog Chewy) have just purchased a house and are...

90.2K

Verified Solution

Question

Finance

a. Denny and Janice (and their dog Chewy) have just purchased a house and are calculating how much money they will need when the closing day rolls around. The purchase price is $200,000. They will make a 20% down payment, and they must pay 2 points on the loan. Closing costs should be 3% of the purchase price. What is the total dollar amount they will need at closing? (Show all work.)

b. Benny and Sally want to calculate the difference in monthly payments on a $110,000 home as a result of a $5,000 down payment or a $10,000 down payment. Use your financial calculator to figure the monthly payments, assuming they get a 6.5%, 30-year mortgage.

c. If a lender requires that mortgage payments cannot exceed 30% of gross income and total loan payments cannot exceed 38% of gross income, calculate the monthly payment for which a person with the following financial data could qualify.

Gross Income $5,500 Stereo loan payment 250 Furniture loan payment 200 Auto loan 400

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!
Become a Member

Other questions asked by students

Advance Math
1.2K views

A particular county in a certain state of a far away country has 17 cities and...

Biology
1.2K views

How many Chinook salmon were in the Klamath River in 2002 Just over 100 000...

Physics
1.2K views

12 i Using Gauss Theorem derive an expression for electric field intensity at a point...

Basic Math
1.2K views

SE EFFECTFEET WERKE S FFEYSEL 7 2 Soviet soldiers with lowered standards of the defeated...

Algebra
1.2K views

Perform the operation and simplify. Leave answers in exponential form. 5^3/2.5 Provide your answer below:

Accounting
1.2K views

Describe how you would conduct the audit process, incorporating the analytical procedures you would use...

Accounting
1.2K views

X Company is thinking about expanding the production of Product A and eliminating Product B....

Accounting
1.2K views

Schefter Mining opera una mina de cobre en Wyoming. Los costos de adquisicin, exploracin y...

Accounting
1.2K views

Make jourrnal entries fo it and solve the depreciation

Finance
1.2K views

3. It is January 1", 2020. A bank has 30 more months remaining in an...

Accounting
1.2K views

| - ...

Finance
1.2K views

Suppose the 1-year domestic interest rate is 0.33, keeping in mind that means (1000.33)%. Suppose...