User Account

All Pages

What is the maximum amount of mortgage you can afford

Assignment Help Financial Accounting
Reference no: EM132893875

Question - You want to buy a house in 5 years. Based on your income, the maximum payment you can budget for your mortgage payments after you buy the house are $2000 per month. Based on the current interest rates, you believe that you can get a 30-year, monthly payment mortgage for your house at 5% APR.

What is the maximum amount of mortgage you can afford to take based on your income?

You are planning to save $80,000 for a down payment in 5 years. Assuming, you invest your savings in your investment account that earns on average 10% return in a year, how much monthly contribution would you have to make to your investment account in order to be able to save your down payment in 5 years?

You already have $25,000 saved in your investment account. How much would your monthly contributions have to be, under this condition, in order to save your down payment in 5 years?

If you can save your $80,000 down payment in 5 years, and based on the mortgage amount calculated in Part 1 (assuming there are no extra costs like sales taxes...etc), what is the maximum value of the house you can afford?

Reference no: EM132893875

Questions Cloud

Schedule of forecasted sales : Actual sales for the six-month period, January through June, Schedule of forecasted sales, on a rolling basis, for the months January through June, inclusive
Strength and weakness of the extant governance models : From accountability and stakeholder persepective what are the strength and weakness of the extant governance models
Important aspects of good corporate governance : Argue which, in your opinion, are the three most important aspects of good corporate governance and why.
What is the main purpose of effective discipline : What is the main purpose of effective discipline?
What is the maximum amount of mortgage you can afford : You already have $25,000 saved in your investment account. What is the maximum amount of mortgage you can afford to take based on your income
Compare budget and actual financial information : Why is it critical to compare budget and actual financial information to assess performance?
Explain standardized data sets in healthcare : What are the pros and cons of using these standardized data sets in healthcare.
Determining the payer mix for maximum reimbursement : Analyze how third-party policies would be used when developing billing guidelines for patient financial services (PFS) personnel and administration
Calculate the maximum dividend per share of common stock : Calculate the maximum dividend per share of common stock for years 2020 to 2026 in case preferred stocks would be non cumulative

Reviews

Write a Review

Financial Accounting Questions & Answers

  Actual sales values at split-off point

If selling prices of finished products Y and Z remain constant, percentage of joint costs allocated to product Y and product Z would

  How horizontal analysis is performed for the balance sheet

How horizontal analysis is performed for the balance sheet, income statement, or cash flow statement. What are the benefits of performing this type of analysis?

  Discuss between various levels in fair value hierarchy

Discuss the differences between the various levels in the fair value hierarchy. Do you agree that the outcomes at all three levels should be described

  What is the amount of their total tax liability

Jake and Christina are married and file a joint return for 2014 with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes. Their regular tax liability is $16,713. What is the amount of their total tax liability?

  Analyzing financial statement using ratio analysis

Analyzing financial statement using ratio analysis  - determine and recommend appropriate action on the loan request.

  What price should the stock sell for if investors require

Chill Pill Pharmaceuticals is expecting a growth rate of 14% for the next two years due to its new drug. Thereafter it should level to an 8% growth rate. The last dividend paid was $.65 per share. What price should the stock sell for if investors req..

  Prepare statement of corrected net profit

Journal entries to correct the errors. Prepare Statement of corrected net profit. The trial balance of S Juma, a sole trader, did not balance on 30 April 1995.

  What is the classified balance sheet in good form

Presented below are a number of balance sheet items for Skysong, Inc. for the current year, 2020. What is the classified balance sheet in good form

  ACC 302 Intermediate Accounting Assignment

ACC 302 Intermediate Accounting Assignment Help and Solution - University of Kentucky, USA. Prepare the journal entries that Shamrock should record on January

  How much will opereting income change if sales incresed

Salter Inc.'s unit selling price is $50, the unit variable cost are $35, fixed costs are $125000 and current sales are 10000. How much will opereting income change if sales incresed by 5000 units?

  What is total cost of the job when it is completed october

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The company applies overhead at the end of each month at a rate of 200% of ..

  Calculate variances that isolate the effects of price

Calculate variances that isolate the effects of price and usage changes in direct materials and direct manufacturing labor and discuss the pros and cons of immediately changing the standards.

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