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Rashawn18
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PLEASE HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Victor earns a gross annual income of $84,482 and is buying a home for $185,500. He is making a 15% down payment and financing the rest with a 25-year loan at 4.25% interest.

Awhat is the mortgage amount he will borrow?
Bcan he afford this mortgage? Justify your response.
Cwhat can his monthly mortgage payment be
DFor how many months will he pay for the house
Ewhat will his total payment for the house be?

F) what is the amount of interest he will pay?

PLEASE HELP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Victor earns a gross annual income of 84,482 and is buying a home for 185,500. He is making a 1 class=

Verified Answer :

mfnright
A185,500 -.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
isyllus

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

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