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monthly expenses for utilities at $220, maintenance at $100, property taxes at $380,

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Please only answer # 2 Kim and Dan Bergholt are both government workers. They are considering purchasing a home in the Washington D.C. area for about $280,000. They estimate monthly expenses for utilities at $220, maintenance at $100, property taxes at $380, and home insurance payments at $50. Their only debt consists of car loans requiring a monthly payment of $350.Kim's gross income is $55,000/year and Dan's is $38,000/year. They have saved about $60,000 in a money market fund on which they earned $5,840 last year. They plan to use most of this for a 20% down payment and closing costs. A lender is offering 30-year variable rate loans with an initial interest rate of 8% given a 20% down payment and closing costs equal to $1,000 plus 3 points.Before making a purchase offer and applying for this loan, they would like to have some idea whether they might qualify.1.Estimate the affordable mortgage and the affordable purchase price for the Bergholts. 2.Suppose they do qualify;what other factors might they consider before purchasing and taking out a home mortgage? 3.What future changes might present problems for the Bergholts?

 

Paper#26634 | Written in 18-Jul-2015

Price : $37
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