Estimate the affordable mortgage price

Reference no: EM1353534

I need to estimate the affordable mortgage and the affordable purchase price for the Bergholts. Please show all work and give an explanantion of how you got it. Here is their information:

Kim and Dan Bergholt are both government workers. They are considering purchasing a home in the Washington D.C. area for about $280,000. They estimate monthly expenses for utilities at $220, maintenance at $100, property taxes at $380, and home insurance payments at $50. Their only debt consists of car loans requiring a monthly payment of $350.

Kim's gross income is $50,000/year and Dan's is $35,000/year. They have saved about $60,000 in a money market fund on which they earned $5,840 last year (included in the $60,000). They plan to use most of this for a 20% down payment and closing costs. A lender is offering 30-year variable rate loans with an initial interest rate of 7% given a 20% down payment and closing costs equal to $5,400.

Reference no: EM1353534

Questions Cloud

Designer personalities-genetic engineering enterprise : Designer personality is a term that has its basis in the genetic engineering enterprise in bio-medial field.

What is the price elasticity of demand for a campus film : Assume that at the current price, the price elasticity of demand for a campus film series is 1.40. If the objective of the film society is to maximize its total revenue.

Websites be required to adhere to section standards : what is the purpose then? Do you think that all websites should be required to adhere to Section 508 standards? Why or why not?

Elucidate what impact will this change have on the price : Elucidate what impact will this change have on the price level, output, and employment in the short run in the United States.

Estimate the affordable mortgage price : Kim and Dan Bergholt are government workers. They are planniing buying a home in the Washington D.C. area for about $280,000.

Explain how much does the total amount of deposits : Explain how much does the total amount of deposits in the banking system increase? By how much does the money supply increase.

Describe the practical applications for human resource : Describe the practical applications for Human Resource Professionals inclusive of what you learned compared to what you knew prior

Prominent global business leaders : This posting fully identifies prominent global business leaders, lists five personality traits, and connects them to personality theories of psychology.

Explain how are gains from trade shared among the parties : Explain how are the gains from trade shared among the parties to a trade. Is it possible for specialization and trade to increase total output of traded goods.

User Account

All Pages