Question

PLEASE HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 1

Victor earns a gross annual income of $84,482.

The value of home $185,500

He made 15% down payment

Down Payment = 15% of 185500

                          = 0.15 x 185500

                          = $27,825

Amount to be borrowed for loan = 185500 - 27825 = $157,675

Loan for 25-years at 4.25% interest.

Number of thousands in 157675 = 157.675

Using table.

Monthly Payment for $1000 = $6.192

Monthly Payment for $157675 = 157.675 x 5.417 = $854.125

Yearly Payment = 12 x 854.125 = $10,249.50

(A) The mortgage amount to be borrowed is $157,675

(B) Yes, He can afford monthly payment because  his yearly income is $84,482 and yearly mortgage payment is $10249.50

(C) Monthly Mortgage payment = $854.125

(D) Total number of months = 25 x 12 = 300 Months

(E) Total payment for the house = 854.125 x 300 + 27825=  $284,062.5

(F) Interest pay = Total payment  - Mortgage borrowed amount

                          =  $98,562.50

Answer 2

A) 185,500 -.15(185,500)=157,675
B) Yes he can afford it, it doesn't go over his income and it's %27 below.
C) 854
D) 256,256
E) 98,581