Compute the per month cost including interest

Assignment Help Finance Basics
Reference no: EM132596494

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.

Interest for an ARM currently is 4.5 %. The conventional loans are 5.25% today.

Compute the per month cost including interest, taxes and insurance (use above formula to get the taxes and insurance cost) for a ARM. Show your work

What will their down payment be?

Reference no: EM132596494

Questions Cloud

Operating cash flows in year-lunches : a. What are the operating cash flows in each year?
Demonstrate how evidence is critically examined : Evaluate the article you chose in assignment - Implications for EBP and how this article could be used to make an evidence-based change
How calculate the variable cost per unit : Layla Limited incurred, Calculate the variable cost per unit and the fixed cost per month by using the Simple regression method
What is the present value of this actual stream : Discounted at (10) ten percent compounded interest per year, what is the present value of this actual stream of additional revenue? Show your calculations
Compute the per month cost including interest : Compute the per month cost including interest, taxes and insurance (use above formula to get the taxes and insurance cost) for a ARM.
Calculate the total over or under applied overhead for year : Calculate the total over or under applied overheads for the year and briefly explain what your answer mean in terms of overhead expenses for the year.
Provision of incorrect information : Give an example of the problem that could be caused by wrong information in a bank.
Which option should the firm choose : The Promoter Chairperson of a leading Jewellery chain in Kerala had recently procured a Corporate Jet. Which option should the firm choose
How compute amount of cash disbursements for the month : How Compute amount of cash disbursements for the month. The company pays for half of the purchases in the current month and the other half

Reviews

Write a Review

Finance Basics Questions & Answers

  Sustainable growth if the parodies corp has a 16 percent

sustainable growth if the parodies corp. has a 16 percent roe and a 20 percent payout ratio what is its sustainable

  How much can the firm increase its inventory

How much can the firm increase its inventory without its current ratio falling below 2/1. Assuming all other assets and current liabilities remain constant

  How much will you invest each month

Explain why you chose each strategy instead of others that you did not choose. How much will you invest each month?

  What rate should the shop report

Big Dom's Pawn Shop charges an interest rate of 27.3 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers.

  Computation of net income and operating cash flows

Computation of Net Income and Operating cash Flows and What is the depreciation tax shield

  How many years do these bonds have left until they mature

Finding the Bond Maturity Cavo Corp. has 7 percent coupon bonds making annual payments with a YTM of 8.34 percent. The current yield on these bonds is 8.13 percent. How many years do these bonds have left until they mature?

  What is the payback period for project

What is the payback period for this project? Round to four decimal places.

  What is operating cash flow

If there is $126 in depreciation expense and the tax rate is 32.4%, what is operating cash flow? Round to the nearest penny.

  Introduction of an electrically powered bike for city

Hank Auto in Tokyo, Japan is considering the introduction of an electrically powered bike for city use. The bike project requires an initial

  Who was russell sage

Briefly describe four aspects of Sage's financial operations that remain of current interest.

  How can you explain the rises in the stock market

What was the percentage rise per year in the US stock market from 1921 to 1929? What was the percentage rise per year in the US stock market from 1982 to 1987?

  Support the allegation of poor billing performance

Before you proceed, you want proof. Explain how each of the following ratios could support the allegation of poor billing performance. Include an analysis of working capital in your discussion.

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