User Account

All Pages

How much of a mortgage loan will the couple need

Assignment Help Finance Basics
Reference no: EM132013476

Anusha and Naveen are planning to buy their first home. They have saved $30,000 and will withdraw the maximum from their RRSPs under the Home Buyers' Plan. They will pay the cost of CMHC mortgage loan insurance separately. They estimate closing costs at $8,200 and will take a 25-year mortgage at a rate of 3.2%, compounded semi-annually, for a 3-year term. They will pay the mortgage monthly. The home they wish to buy costs $450,000.

Part a

How much of a mortgage loan will the couple need?

Mortgage loan calculation

450 000$ -30 000$ = 420 000$ -25 000( RRSPs) =395 000$ + 8200( Closing costs) = 403 200$

Reference no: EM132013476

Questions Cloud

Yield on perpetual debt : Firm is considering switching to 40% debt capital structure, and gad determined that they would pay a 10% yield on perpetual debt
Describe the sample design method : Describe the sample design method you will use and why - Specify the population and sample group. Will you include everyone who works for the company
Determine the issues or message : Determine the issues or message (e.g., telehealth impact on your practice) you would to discuss with your legislator(s). American Nurses Association Legislative
Present value and shareholder wealth maximization : What is the relationship between the concepts of net present value and shareholder wealth maximization?
How much of a mortgage loan will the couple need : How much of a mortgage loan will the couple need?
What types of bias researchers should have been concerned : For this week's forum, read through the article that you chose for your research paper. In your initial post, discuss what types of bias the researchers.
What will be the value of her after-tax investment : What will be the value of her after-tax investment in one year's time?
What is an effective annual rate : The sticker price is $35,000. Provincial sales taxes of 15% would apply. Amal has $5,000 to use as a down payment. The bank will charge her 7.75%
Describe the key management incentive program : Describe the Key Management Incentive Program (KMIP) and how it would be impacted by your new organizational structure.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What is the best estimate of stock price per share

Based on the corporate valuation model, the value of Chen Lin Inc.'s operations is $ 852 million. Its balance sheet shows $ 112 million in notes payable.

  What price would an investor be expected to pay

If the current price of the stock is $18.90, and the equity cost of capital for the company that released the shares is 6.4%, what price would an investor be expected to pay per share five years in the future?

  How would you use information in the design of the projects

The magnitude of the cash flows will, in large part, depend upon how quickly the economies of the emerging markets grow in the long term.

  Merchandise transactions for the month of january

Ferris Company began 2018 with 4,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January 2018.

  The conversion price of common stock is 20 a share into

bond to common shares. the conversion price of common stock is 20 a share. into how many shares will a 1000

  Explain the project assessment methods

Explain the project assessment methods that Exxon Mobil should have used to assess these projects (IRR, NPV, payback, and ARR).

  Developer of advanced security systems

IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development? strategy

  Flly explaindiscuss the fama-french three factor model

fully explaindiscuss the fama-french three factor model. assuming the model is reasonably valid how should equity

  Expected returns equals the risk free rate

What is the highest expected return these bonds could? have?

  Bear stearns and the repo market

Bear Stearns and the Repo Market : - Explain the lesson to be learned about the repo market based on the experience of Bear Stearns.

  Compute the investments expected return

B. J. Orange Corporation is evaluating a security. One-year Treasury bills are currently paying 1.9%. Compute the investment's expected return and standard deviation.

  Determine the single most impactful

From international tax planning and researching, determine the single most impactful or interesting thing you can learn about it.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd