Planning to buy house

Assignment Help Financial Management
Reference no: EM132008761

You are planning to buy a house, and have been saving up money to do so. You currently have $25,000 saved for a down payment and closing costs. You go to the bank for a mortgage. Assumptions:

– Closing costs are estimated to be 4% of the loan amount

– Your annual salary is $48,000, and the bank will allow you to borrow such that 28% of your pretax monthly salary goes to pay off the mortgage

– The current interest rate is 0.5% per month for a 30-year fixedrate mortgage

– How much can you borrow? What is the most you can offer on a house?

Reference no: EM132008761

Questions Cloud

What is the price of the firm perpetual preferred stock : what is the price of the firm's perpetual preferred stock? what should be the price of the company's stock today ?
Various exchange-hedging instruments and techniques : Evaluate the advantages and disadvantages of various exchange-hedging instruments and techniques.
What is the IRR of investment opportunity : ou are considering an investment in a clothes distributer. What is the IRR of this investment opportunity.
Cash was spent during the year related to restructuring : How much cash was spent during the year related to restructuring?
Planning to buy house : You are planning to buy a house, and have been saving up money to do so. How much can you borrow? What is the most you can offer on a house?
The equity in real estate investment refers : The equity in real estate investment refers to
Considering buying new machine to increase production : Progress Incorporated is considering buying a new machine to increase production. What is the NICO for the project?
Using dicounted cash flow method to value acquisition : What estimations have to be made when using Dicounted Cash Flow method to value an acquisition?
Calculate the after-tax cost of borrowing from dealership : Calculate the after-tax cost of borrowing from the motorcycle dealership. Which source of borrowing is less costly for Bella?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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