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- fill out the worksheet using the following information: Theoretical Housing Situation: Renting: Monthly Rent: $1,800 Renter’s Insurance: $200 per year Security Deposit: $2,000 After-tax Savings Rate: 5% Buying: Home Price: $250,000 Down Payment: $50,000 Loan Amount: $200,000 Loan Term: 25 years Interest Rate: 3.5% Property Taxes: 1.25% of the home price Homeowner’s Insurance: 0.4% of the home price Maintenance Costs: 1.5% of the home price Closing Costs: $5,000 After-tax Rate of Return: 4% Tax Rate: 25% Estimated Annual Appreciation: 2%Calculate how much money a prospective homeowner would need for closing costs on a house that costs $237 comma 500237,500. Calculate based on a 2121 percent down payment, 1.21.2 discount points on the loan, a 0.60.6 point origination fee, and $1 comma 8301,830 in other fees.Find the amount of the down payment (rounded to the nearest hundred dollars) necessary for the buyer to afford the monthly payments for the described home. (Use this table to calculate your answer.) Monthly salary of $1,680, with monthly bills of $235; $89,000 home with a 30-year 9% loan Need Help? Read It Watch It
- fill in the blanks using this information: Theoretical Housing Situation: Renting: Monthly Rent: $1,800 Renter’s Insurance: $200 per year Security Deposit: $2,000 After-tax Savings Rate: 5% Buying: Home Price: $250,000 Down Payment: $50,000 Loan Amount: $200,000 Loan Term: 25 years Interest Rate: 3.5% Property Taxes: 1.25% of the home price Homeowner’s Insurance: 0.4% of the home price Maintenance Costs: 1.5% of the home price Closing Costs: $5,000 After-tax Rate of Return: 4% Tax Rate: 25% Estimated Annual Appreciation: 2% Now, fill in the worksheet: A. COST OF RENTING: Annual Rental Costs (Line A.1): 12×$1,800=$21,60012×$1,800=$21,600 Renter’s Insurance (Line A.2): $200 Opportunity Cost of Security Deposit (Line A.3): $2,000×0.05=$100$2,000×0.05=$100 Total Cost of Renting (Line A.1 + Line A.2 + Line A.3): $21,600+$200+$100=$21,900$21,600+$200+$100=$21,900 B. COST OF BUYING: Annual Mortgage Payments (Line B.1): Use a mortgage calculator to find the monthly…Give typing answer with explanation and conclusion 18. Of the following expenses, which one can be considered an annuity? Question 18 options: A) Monthly bill for electricity or gas B) Yearly homeowner association fees C) Recurring car maintenance D) A payment for a car loanRead the passage and answer the following question(s). dis ins Homeowner and Renters Insurance: Protect Your Belongings You may be able to save hundreds of dollars a year on homeowners insurance by shopping around. You can also save money with these tips: Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium. Ask your insurance agent about discourks. You may be able to get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material. Persons over 55 years of age or long-term customers may also be offered discounts. OD. Insure your house NOT the land under it. After a disaster, the land is still there. If you don't subtract the value of the land when deciding how much homeowners insurance to buy, you will pay more than you should. Don't wait till vou have lor
- Before you are able to purchase a home you need to get pre-qualified and determine the maximum amount you can afford for the mortgage payment. The mortgage company that you visit uses the qualifying ratios 29/41. After speaking with the mortgage broker and answering several questions, the broker compiles this information regarding your income and expenses: You have a monthly income of $5,500. Your significant other that is living with your and will be on the loan earns $4,500 monthly. You have 2 car payments, one is $325 and the other is $280. Your significant other has a motorcycle payment of $450. You have a credit card payment of $25. Your significant other has a credit card payment of $180. The annual property tax in the area that you are considering to purchase the house has an average amount of $2800, while the average home insurance is $800 annually. Determine the anticipated monthly payment of the mortgage based on the given ratios. A) The Front-End (AKA: Housing) Ratio: ? B)…Would a person with the following income and expenses qualify for a home based on the front end affordability ratio? Annual gross income = $60,000 Monthly principal and interest payment = $1,000 Monthly home insurance payment = $100 Monthly property tax payment = $100 Monthly credit card payment = $50 Monthly car payment = $250 Monthly student loan payment = $200You borrow $675,000 to buy a home using a 30-year mortgage with an interest rate of 3.675 percent and monthly payment. Calculate the interest portion of the 20th payment. Disregard property taxes and mortgage insurance. Group of answer choices $2,006 $1,999 $2,002 $1,818 $1,821
- 1. has After moving, a homeowner's annual insurance premium increased from $480 to $710 per year. Calculate the due if there are 3 months left in the additional amount policy year. pay when 2. State two additional costs that a purchaser may have to purchasing a new home. Explain what these additional costs are. Use the chart below. Additional Costs ExplanationsAuto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance polier through A Auto Insurance with the following options? Bodily Injury: S50/100,000 Property Damage: $100,000 Collison: S100 deductible Comprehensive: $100 deductible a.$845 b. $350 c. $7O d. $67Cost of the Home $ Down Payment A: % Down Payment B: % Down Payment C: % Down Payment Amount Your equity (financial contribution to the purchase of the home) $ $ $ Initial Mortgage Required (cost of home down payment) $ $ $ Not for the mortgage itself, but for insurance on the mortgage so be sure to use the tool provided to find the correct rate according to the regulations Mortgage Insurance RATE (if applicable) % % % Mortgage Insurance DOLLAR AMOUNT (if applicable) $ $ $ Final