User Account

All Pages

Cost of insurance be per month

Assignment Help Finance Basics
Reference no: EM132596486

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:

  1. What will their down payment be?
  2. What will the cost of insurance be per month?
  3. What will their taxes be per month?
  4. What will their principal and interest be per month?
  5. What is their total monthly payment going to be including everything?

Reference no: EM132596486

Questions Cloud

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
Identify and describe the decision-making process : Identify and describe the decision-making process you will adopt to help you in your purchase decision - identify and describe the requirements for effective
What is the irr of project-mitec inc : The Mitec Inc. is planning to purchase a new production machine. The startup cost of purchasing and installing the machine is $1,000,000.
Compute the payback and the discounted payback period : Compute the payback period and the discounted payback period that you would communicate to the management
Cost of insurance be per month : Tom and Nancy want to buy a house in a particular neighborhood. they have two children ages 1 and 4. The average price home
How much depreciation expense should Dirt record : Using the same depreciation method as used in 20x5, 20x6, and 20x7, how much depreciation expense should Dirt record in 20X8 for asset B
Compute the amount of cash disbursements for the month : Materials, Interest is paid at the end of the month with no principal payment. Compute the amount of cash disbursements for the month.
What is the npv of alternative : Gold Ltd is considering the possibility of acquiring Silver Ltd. Both companies are unlevered (have no debt). Gold Ltd believes
Compute the amount of total cash available : Which cash is received right away, less a 2% transaction fee. Total sales for the month was $500,000. Compute the amount of total cash available

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the market price of the security

The market price of a security is $40. Its expected return is 13%. The risk-free rate is 7% and the market risk premium is 8%.

  Questions are about fashion retailer

Compose a sentence or two on the role that each element will play in helping you achieve your marketing goals.

  Problems encountered by the firm due current assets

What are challenges or problems encountered by the firm due current assets and current liabilities in the short run and what are the possible solutions?

  What makes quantitative analysis of country risk challenging

What makes the quantitative analysis of country risk challenging?

  What are the implications for financial statement users

Billionaire investor Warren Buffett was once quoted in the Financial Post saying: "The reaction of weak management to weak operations is often weak accounting."

  Which assets appears riskiest based on standard deviations

From the information below, compute the average annual return, the variance, standard deviation, and coefficient for each asset.

  Material presented in the case

List one other issue that could be addressed and relate it to the material presented in the case except presented three-groundwater, recycling, and water safety

  What are the differences between the operating income

what are the differences between the operating income capital gains income and dividend income of a corporation at

  Calculate financial ratio for assessing fiscal effort

You have been asked to perform financial condition ratio analyses for two communities, Thriftyville and Myopica, based on data culled from each of their CAFRs.

  Time value of moneynbspone of the projects the us loan

time value of moneynbspone of the projects the us loan would fund is to build earthquake-resistant buildings. the

  Expansion capital budgeting problem

Consider the following expansion capital budgeting problem. A capital budgeting decision is being considered that would involve an expansion and simultaneous replacement of old equipment. The project is expected to have a 6 year life for the firm..

  Determine the annual percentage yield for an annual percent

Determine the annual percentage yield for an annual percentage rate of 7% for quarterly and monthly compounding periods.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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