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12. You want to buy a $175,000 home, and you have $60,000 saved up. The bank offers a 15-year mortgage at 3.2% interest.(a) If you expect to pay $5,775 in closing costs, what percentage down payment can you afford? Round your answer to the nearest tenth of a percent. %(b) If you put less than 20% down, you'll need to pay mortgage insurance. Will you require mortgage insurance?YesNo(c) What will the principal be on the loan?$ (d) What will your monthly P&I (principal and interest) payment be?$ (e) In addition to principal and interest, the property taxes will be 1.5% of the home value per year, the homeowners insurance will be $850 per year, and the mortgage insurance (if needed, according to part (b)) will be $40 per month. What will your total monthly payment amount be?$ (f) How much will you pay in total over 15 years in principal and interest?$ (g) How much interest will you pay in total?$

12 You Want To Buy A 175000 Home And You Have 60000 Saved Up The Bank Offers A 15year Mortgage At 32 Interesta If You Expect To Pay 5775 In Closing Costs What P class=

Sagot :

SOLUTION:

Step 1:

In this question,we have the following:

Step 2:

Part A: You want to buy a $ 175,000 and you have a $ 60,000 saved up.

The bank offers a 15-year mortgage at 3.2 % interest.

a) If you expect to pay $ 5,775 in closing costs. What percentage down payment can you afford? Round your answer to the nearest tenth of a percent.

If you saved up $60, 000 and the closing costs is $ 5,775

The difference will be:

[tex]60,000dollars\text{ - 5,775 dollars =54, 225 dollars}[/tex][tex]\begin{gathered} \text{Percentage of down payment = }\frac{54225}{175,000}X\text{ 100} \\ =\text{ }\frac{5,422,500}{175,000} \\ =\text{ 30.98571429} \\ \approx\text{ 31 \% ( to the nearest tenth)} \end{gathered}[/tex]

Part B :

If you put less than 20% down, you'll need to pay mortgage insurance.

Will you require mortgage insurance? YES or NO

The answer is NO because 31% is far more than 20%

Part C:

What will be the principal be on the loan?

The principal on the loan =

[tex]175,000\text{ dollars - 54,225 dollars = 120, 775 dollars}[/tex]

Part D:

What will be your monthly P & I (principal and interest) payment be?

[tex]It\text{ will be 845 dollars}[/tex]

Part E:

In addition to principal and interest, the property taxes will be 1.5 % of the home value per year, the house owners insurance will be $850 per year and the mortgage insurance. What will your total monthly amount be?

[tex]\frac{\frac{1.5}{100}(175000)+850}{12}\text{ + 845}[/tex][tex]\begin{gathered} =\text{ 289. 6+845} \\ =1134.6\text{ dollars} \end{gathered}[/tex]

Part F:

How much will you pay in total over 15 years in principal and interest?

[tex]\begin{gathered} \text{Monthly payment x Number of months} \\ =\text{ 845 x 15 x 12 } \\ =\text{ 152,100 dollars} \end{gathered}[/tex]

Part G:

How much interest will you pay in total?

[tex]\begin{gathered} \text{Amount - Principal} \\ =\text{ 152,100 - 120,775} \\ =\text{ 31,325 dollars} \end{gathered}[/tex]

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View image KashonX85789
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