a) The amount (in $) of the down payment is $32,000.
b) The amount (in $) of the mortgage for which the Bradys are applying is $128,000.
c) The amount (in $) of the principal and interest portion of the Bradys' monthly payment, at $5.37 for every $1,000 financed, is $687.36.
d) The total amount (in $) of interest that will be paid over the life of the loan is $$119,449.60.
e) The total monthly payment (in $) for PITI (principal, interest, taxes, and insurance) is $951.36.
f) Based on the bank rules that state that mortgage payments cannot exceed 14% of the combined monthly income of $3,750, <u>B. No, they will not qualify</u>.
(g) The monthly income (in $) that would be required to qualify for this size mortgage payment is $4,909.71 ($687.36/0.14).
<h3>Data and Calculations:</h3>
Down payment = 1/5 or 20%
Home Price = $160,000
Down Payment = 20%
Loan Term = 30 years
Interest Rate = 5%
Annual property tax = $1,710 per year
Annual property insurance = $1,458 per year
Monthly taxes and insurance = $264 ($3,168/12)
Monthly PITI (principal, interest, taxes, and insurance) = $951.36 ($264 + $687.36)
14% of $3,750 = $525
<u>Results:</u>
Monthly Pay: $687.36 ($5.37 x $128,000/$1,000)
Loan Amount $128,000 ($160,000 - $32,000)
Down Payment = $32,000 ($160,000 x 20%)
Total of 360 Mortgage Payments = $247,449.60 ($687.36 x 360)
Total Interest = $119,449.60 ($247,449.60 - $128,000)
Learn more about mortgage payments at brainly.com/question/1318711
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