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Mortgage Loan Analysis: Mr. Davidson plans to buy a new house at Sugar Land in June...

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Finance

Mortgage Loan Analysis: Mr. Davidson plans tobuy a new house at Sugar Land in June 2019. The sale price of thehouse is $500,000. He plans to pay 20% down payments and borrowadditional 80% from Bank of America with a 30-year, 3.875%fixed-rate mortgage loan. He is expected to pay an equal MONTHLYpayment starting from July 2019 for a total of 30 years.

(1) Calculate the required monthlypayment for Mr. Davidson.

(2) Construct 2019~2021 amortizationtable (30 months) for Mr. Davidson.

  1.    Mr. Davidson should prepare his 2019 tax filingsin early 2020. Estimate the total mortgage interest payments forhis 2019 tax deduction.  

Answer & Explanation Solved by verified expert
3.7 Ratings (614 Votes)
1 Monthly payment 188095Using PMT function in excel2 TABLELoan AmountInterest RateTerm in YearsMonthly    See Answer
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