Prices of the real estate properties are predicted

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Reference no: EM132014267

1. Your best friend, who is in 30% Marginal tax Bracket, has decided to buy a home for $ 380,000 in the Worcester County by making a down payment of 15% and financing the balance at a fixed rate 5.75% over 30 years. He needs your help in figuring out the actual monthly Payments (per Month Mortgage Pmts – per month Tax Savings) for the first year.

a. $ 1,995.82

b. $1,397.07

c. $ 1,540.32

d. $ 1,507.06

2. Denis is planning to buy a Duplex at a price of $ 375,000 by financing it with loan to value ratio of 75% for 30 years at fixed mortgage rate of 6.5%. Prices of the Real Estate properties are predicted to increase each by 5% for indefinite period. Should Denise decide to buy this Duplex right, his Equity, at the end of three years, would be:

a. $108,527

b. $163,873

c. $ 162,196

d. $103,827

Reference no: EM132014267

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