What is their total mortgage payment-principal-interest

Assignment Help Financial Management
Reference no: EM13728720

1. Grace wants to purchase a home with a list price of $250,000; she has a $25,000 down payment. Her salary is $85,000 per year. Currently, she has a $250 car payment and a student loan payment of $375. Her lender uses a housing expense ratio of 28% and a debt to income ratio of 37%. Her lender is offering her a 30 year fixed rate mortgage for 5%. The monthly insurance and property taxes are about $375. What is the maximum monthly mortgage payment the lender will allow Grace to make on her mortgage?

2. Mary and Carlos want to buy a $400,000 house. They have $50,000 for a down payment. Their lender is offering them a 30 year mortgage at 6.2%. What is their total mortgage payment (principal & interest + escrow)?

Reference no: EM13728720

Most you should be willing to pay today for this investment

You have the chance to receive $700 at the end of 2 years. a) If you can earn 5% on similar risk investments, what is the most you should be willing to pay today for this inve

Use at least two capital budgeting methods

A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the compa

What are loan closing cost and how can they be categorized

What are loan closing costs? How can they be categorized?- In the absence of loan fees, does repaying a loan early ever affect the actual or true interest cost to the borrower

Role in designing internal control systems

Describe the controller's role in designing internal control systems. Identify examples of different internal controls a controller can consider in designing an effective inte

About the derivatives markets

To plant and harvest 20,000 bushels of corn, Farmer incurs fixed and variable costs totaling $33,000 at the time of the harvest. The current spot price of corn is $1.80 per bu

Explain what is the price of the coupon bond

What is the price of the coupon bond. What is the yield to maturity of the coupon bond. Under the expectations hypothesis, what is the expected realized compound yield of the

Consider the widget exchange

Consider the widget exchange, Suppose that each widget contract has a market value of $0 and a notional value of $100. There are 3 traders A, B, and C. Over one day, the follo

What is the interest rate

RentBooks.com is considering floating a bond offering and is attempting to determine what kind of interest rate they would be paying. The market price of comparable bonds is


Write a Review

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!

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