HOME PRICE OFFER. Olivia is ready to make an offer on a 2200 sq. ft. home that is priced at $225,000. She investigates other homes on Lots of similar sizes, within the same neighborhood. A 2,250 square foot home that sold for $250,000. A 1850 square foot home that sold for $230,000. A 1800 square foot house that sold for $200,000. What should she offer on the home?
CLOSING COST. How much would you have to pay at closing if you took out a mortgage loan for $450,000 and did not put a down payment of 20%, but instead put down 10%…which means that you will need to pay an origination fee of 1% and PMI of 1.0% on the total loan amount. Other fees include $150 loan application fee and $450 appraisal fee, $250 for title search and insurance. (How much will you need at closing?)
TOTAL INTEREST PAID. Veronica is considering purchasing a home that requires $300,000 mortgage. The payment on the 30 year mortgage for this amount is $1897.34 per month, the payment for a 15 year maturity is $2200.57 per month.
A) What is the total amount she would pay for the 30 year mortgage?
B) What is the total amount that she would pay for the 15 year mortgage?
C) What is the difference in the total interest paid between the two different maturities?
TAX SAVINGS. If the rent on an apartment is $1500 per month, which is equal to a mortgage payment on a house, how much additional tax savings will you realize if $800 of the monthly mortgage payment is interest and your tax bracket is 28 percent?
If a current mortgage payment of $1700 per month can be reduced to $1250 per month by refinancing, how many months would you need to remain in the house to recoup refinancing charges of $4,000? (Round up to the nearest month.)