Emma Jones s plain to move this coming summer. She has not yet decided whether she...

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Emma Jones s plain to move this coming summer. She has not yetdecided whether she wants to rent or buy a property here inMississippi. Her monthly budget is $1500 to cover any housingexpenses including rent or owners' costs (example: mortgage, hazardinsurance, property taxes, and Home Owner Association fees).Estimated the maximum house value she can afford to buy. Assume themortgage is fixed rate, 30 years maturity, 80% LTV, with no points.The interest rate that she was quoted is 4.8% with monthlypayments. The value; the hazard insurance premium is 0.5% per year,and that on average you should consider $50 per month formaintenance.
Determine the required monthly payment for the mortgage andmaximum house value she can afford if she buys?

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3.7 Ratings (596 Votes)

At the outset let me tell you that while copying and pasting the question you have lost at least one sentence In the middle your question reads The interest rate that she was quoted is 48 with monthly payments The value the hazard insurance There is something amiss I have seen a similar question in past To me it seems you have lost a sentence that See Answer

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Emma Jones s plain to move this coming summer. She has not yetdecided whether she wants to rent or buy a property here inMississippi. Her monthly budget is $1500 to cover any housingexpenses including rent or owners' costs (example: mortgage, hazardinsurance, property taxes, and Home Owner Association fees).Estimated the maximum house value she can afford to buy. Assume themortgage is fixed rate, 30 years maturity, 80% LTV, with no points.The interest rate that she was quoted is 4.8% with monthlypayments. The value; the hazard insurance premium is 0.5% per year,and that on average you should consider $50 per month formaintenance.Determine the required monthly payment for the mortgage andmaximum house value she can afford if she buys?