Suppose you decide to purchase a $150000 home for $20000 down. A down payment is subtracted from your home’s value and therefore you owe $130000. Well to pay for this amount you will need a loan, so $130000 is the principal on your loan. Suppose the interest rate on a 30 year mortgage is 4.5%. What will your monthly payment be? Create an amortization table for this loan. How much will you pay on the loan if you pay off the loan as

Q: Problem. Suppose you want to purchase a home for $440,000 with a 30-year mortgage at 4.24% interest.…

A: Value of home is $440,000, down payment is of amount $110,000 (25%*$440,000). Actual loan amount is…

Q: You want to buy a $199,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: Formula; Loan amount = Home value * (1 - Down payment)   Loan amount = $199,000 * (1 - 0.10) Loan…

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Price of Home =$ 170000 Down Payment =$ 34000 Amount Financed = $ 170000-$ 34000 = 136000 Years = 20…

Q: Suppose you want to purchase a $ 240000 house. If you put 20% down and finance the rest in a 25 year…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You want to buy a $260,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: a) Loan Amount = Total price of house - Down payment  = 260,000 - (260,000 * 5%) = 260,000 - 13,000…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: You want to buy a $177,500 home. You plan to pay 30% as a down payment, and take out a 30-year loan…

A: Closing cost is the cost which has to be paid by either seller or the buyer to the government when…

Q: Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the…

A: The term mortgage can be defined as the contract between two parties namely lender and  borrower,…

Q: You are buying a home that cost $110,000 and are putting 20% down to avoid PMI. What would their…

A: Cost of house is $110,000 , down payment is 20% of cost = $22000. Therefore, loan amount is $88,000.…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: You want to buy a $195,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The loan amount would be price of home less down payment. Monthly payment =Loan amountPVAIF (…

Q: You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loa with a…

A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. c. If you pay…

A: formula for Monthly payment: PMT = P×rm1-1+rm-m×n where, p = loan amount r = rate m = frequency of…

Q: You want to buy a $198,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: Suppose you want to purchase a house. Your take-home pay is $2790 per month, and you wish to stay…

A: Note: We are considering that the monthly payment is ¼ of the take home pay. Given: Take home pay =…

Q: Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the…

A: An agreement through which a lender lends the money to the borrower, and has the right to take the…

Q: ou want to buy a $219,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: a) Hence, the loan amount is $186150.00.

Q: You want to buy a $251,000 home. You plan to pay 5% as a down payment and take out a 30-year loan…

A: A mortgage refers to a loan against the purchase of a house. Mortgage repayment requires the…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 4.54% interest. Suppose…

A: a) Value of home = $475,000 Down payment = 30% = 30%*$475000 = $142500 Loan amount = $332,500 Number…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: A loan is a facility provided by a lender to the borrower under which the borrower can take a lump…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose…

A: given, price = $525000 n = 30 years r = 4.64% m = 12 down payment =30%

Q: You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Down payment: When an asset is bought or a loan is taken, there would be some token amount that…

Q: Suppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 30 year…

A: The monthly payment can be calculated with the help of present value of annuity function.

Q: uppose you want to purchase a house. Your take-home pay is $3040 per month, and you wish to stay…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You want to buy a $202,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: The monthly payment will depend upon the interest rates, the time period and the amount of loan.

Q: You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan…

A: We will only answer the first three subparts for the remaining subparts kindly resumit the whole…

Q: Suppose you take out a 30-year mortgage for $ 225000 at 8.5% interest. The monthly payments on this…

A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…

Q: What is amortization?  Describe other types of loan arrangements. If you could afford to pay cash…

A: Repayment of loan is made in fixed instalments which includes interest due and part of principal for…

Q: Do you want to buy $187,000 home. You plan to pay 20% as a down payment and then take out a 30 year…

A: Given information: Purchase Price = $187,000 Loan = $187,000-20%=$149,600 Time = 30 years Since the…

Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…

A: Given, Rate per period = 0.06 Total number of payments (nper) = 30 Present value (pv) = 300,000…

Q: You want to buy a $202,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: Cost of house is $202,000 Down payment is 20% Time period is  30 years Interest rate is 5.5% To…

Q: Martin has borrowed £250,000 to buy a house. The mortgage rate is 5% per year. How much more will…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: Question is based on the concept of Mortgages

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. If you pay  $975…

A: According to the question, we need to find the time period in which the loan will be paid off. It…

Q: You want to buy a $145,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three…

Q: What are the monthly payments on the original loans ?(Round nearest to cent)

A: Given values, Mortgage = $2,50,000 for 50 year ---->Monthly Payment  No. of payments = 50*12 =…

Q: You want to buy a house that has a purchase price of $190,000. You plan to make a down payment of…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: You want to buy a $227,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Total cost of the home is $227,000. 5% of the amount will be paid as down payment. The monthly…

Q: You want to buy a $190000 home. You plan to pay $19000 as a down payment, and take out a 15 year…

A: Two points of loan is that 2% discount on loan.

Q: You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Down Payment is the payment we make initially at the start of purchase of a home or a vehicle.…

Q: Suppose you want to purchase a house. Your take-home pay is $⁢2830 per month, and you wish to stay…

A: Monthly affordable payment (M) = (1/4) of $2830 = $707.50 r = 3.95% per annum = 0.329167% per month…

Q: You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: You want to buy a house that has a purchase price of $160,000. You plan to make a down payment of…

A: Down payment refers to a small percentage of the total purchase price paid by the buyer. A down…

Q: How much is the loan amount going to be? My loan amount will be $________ . B. What will your…

A: A loan is an agreement in which one party lends money to another party. In the loan, the lender…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.