Question

Theresa is buying a condo that costs $127,500. she has $8,300 in savings and earns $3,200 a month. theresa would like to spend no more than 20% of her income on her mortgage payment. which loan option would you recommend to theresa? a. 30 year fixed, 6.5% down at a fixed rate of 5% b. 30 year fha, 3.5% down at a fixed rate of 6.5% c. 30 year fixed, 5% down at a fixed rate of 6.25% d. 30 year fixed, 10% down at a fixed rate of 5.75%

Answer 1

Based on the fact that Theresa would not like to spend more than 20% of her income on mortgage payments, the best loan option would be a. 30 year fixed, 6.5% down at a fixed rate of 5%.

Which loan option should Theresa use?

First find 20% of Theresa's monthly income:

= 20% x 3,200

= $640

If Theresa goes with the 30 year fixed option at a fixed rate of 5% and a down payment of 6.5%, her monthly mortgage payment would be less than $640.

This is because she would be paying the lowest interest rate of 5% out of the given options.

Find out more on recommended mortgage options at brainly.com/question/23847578.

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