The writer is very fast, professional and responded to the review request fast also. Thank you.
Book/movie review
22/08/2022
Hello I am in need of someone to do problems 2,3,4. I have done problem 1 and provided the answers for reference. The assignment has to be done in 9 hours or 10:30PM central time. Thank you!!
1.Tom and Nancy want to buy a house in a particular neighborhood. they have two children ages 1 and 4. The average price home in this neighborhood runs about $350,000. Together their family income is $100,000. They have saved $75,000. The home they want to purchase costs $300,000. Taxes on the home run $3.00 per $100 of assessed value of the home. For new homes the assessed value is equal to 75% of the purchase price. Insurance runs half of one percent of the purchase price of the home. An Adjustable Rate Mortgage (ARM) requires a 10% down payment. Conventional loans require 20% down payment. Use the current rate of 4.5% at 30 years to calculate the mortgage for the Conventional loan. Use the current ARM rates for the Adjustable Rate Mortgage. Show all work for full credit.
Compute the per month cost including interest, taxes and insurance (use above formula to get the taxes and insurance cost).
Show your work:
What will their down payment be?
Down payment = 20% of the purchasing price
= 300,000 * 20%
= $ 60,000
2) What will the cost of insurance be per month?
Cost of insurance = 1/2 * 1% of 300,000
= $ 1,500
Per month = 1500/12
= $ 125
3) What will their taxes be per month?
Taxes = $3.00 per $100 of assessed value
= 75% of 300,000
Addressed value = 300,000 * 75% = $ 225,000
Per $ 100 = 2250 * 3 = $ 6750 per year
Therefore, the monthly tax = 6750/12
= $ 562.5
4) What will their principal and interest be per month?
The loan term = 30 years
If the Principle = 300,000 – 60,000 = $ 240,000
Interest = ARM Interest of Principle Amount
= 4.5%/12 months
= 0.00375
Monthly principle and interest payment = M
M = 240,000 [0.00375 (1+0.00375)^360/(1+0.00375)^360 – 1]
M = $ 1215.97
5) What is their total monthly payment going to be including everything?
Therefore the total monthly payment;
= Principle & Interest + Taxes + Insurance
= 1215.97 + 562.5 + 125
= $ 1903.472
2. If they are currently renting a three-bedroom apartment for $1,750 per month. Just based on cost of renting vs. cost of buying with the above ARM, which would be cheaper and by how much per month? (20 points)
3. If the couple were to get a conventional loan, what would their cost be using the price of home and figures for figuring taxes and insurance. You will need to use a mortgage calculator. You can find them by asking Google or in one of the files in this module’s content area. Show your figures. (20 points)
a. Monthly principal and interest____________________
b. Monthly taxes________________________________
c. Monthly insurance_____________________________
d. Total cost of house payment using a conventional loan.
4. The Housing Video Topic in Mod 9’s content area presents short video segments that review what we learn in Chapter 13 about buying a home. Part 3 of “How to Buy a Home” describes how different types of mortgages work. After viewing this 3-½ minute video, write a brief description of what a home equity loan is, how it works, what the advantages of a home equity loan over a personal loan, and how it can be used as a savings account.
HELPFUL LINKS: https://myhome.freddiemac.com/buying/?gclid=CjwKCAjw_sn8BRBrEiwAnUGJDhoOHVDNVAR2JvaXFdHSU8c51oqzusk03sYdFlZlxAe2fiav4WfN5hoCJWoQAvD_BwE
https://youtu.be/c0WUw0-EnhQ — *REQUIRED FOR THE LAST QUESTION*
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more