Hello I am in need of someone to do problems 2,3,4. I have done problem 1 and provided the answers for reference. The assignment has to be done in 9 hours or 10:30PM central time. Thank you!!
1.Tom and Nancy want to buy a house in a particular neighborhood. they have two children ages 1 and 4. The average price home in this neighborhood runs about $350,000. Together their family income is $100,000. They have saved $75,000. The home they want to purchase costs $300,000. Taxes on the home run $3.00 per $100 of assessed value of the home. For new homes the assessed value is equal to 75% of the purchase price. Insurance runs half of one percent of the purchase price of the home. An Adjustable Rate Mortgage (ARM) requires a 10% down payment. Conventional loans require 20% down payment. Use the current rate of 4.5% at 30 years to calculate the mortgage for the Conventional loan. Use the current ARM rates for the Adjustable Rate Mortgage. Show all work for full credit.
Compute the per month cost including interest, taxes and insurance (use above formula to get the taxes and insurance cost).
Show your work:
What will their down payment be?
Down payment = 20% of the purchasing price
= 300,000 * 20%
= $ 60,000
2) What will the cost of insurance be per month?
Cost of insurance = 1/2 * 1% of 300,000
= $ 1,500
Per month = 1500/12
= $ 125
3) What will their taxes be per month?
Taxes = $3.00 per $100 of assessed value
= 75% of 300,000
Addressed value = 300,000 * 75% = $ 225,000
Per $ 100 = 2250 * 3 = $ 6750 per year
Therefore, the monthly tax = 6750/12
= $ 562.5
4) What will their principal and interest be per month?
The loan term = 30 years
If the Principle = 300,000 – 60,000 = $ 240,000
Interest = ARM Interest of Principle Amount
= 4.5%/12 months
= 0.00375
Monthly principle and interest payment = M
M = 240,000 [0.00375 (1+0.00375)^360/(1+0.00375)^360 – 1]
M = $ 1215.97
5) What is their total monthly payment going to be including everything?
Therefore the total monthly payment;
= Principle & Interest + Taxes + Insurance
= 1215.97 + 562.5 + 125
= $ 1903.472
2. If they are currently renting a three-bedroom apartment for $1,750 per month. Just based on cost of renting vs. cost of buying with the above ARM, which would be cheaper and by how much per month? (20 points)
3. If the couple were to get a conventional loan, what would their cost be using the price of home and figures for figuring taxes and insurance. You will need to use a mortgage calculator. You can find them by asking Google or in one of the files in this module’s content area. Show your figures. (20 points)
a. Monthly principal and interest____________________
b. Monthly taxes________________________________
c. Monthly insurance_____________________________
d. Total cost of house payment using a conventional loan.
4. The Housing Video Topic in Mod 9’s content area presents short video segments that review what we learn in Chapter 13 about buying a home. Part 3 of “How to Buy a Home” describes how different types of mortgages work. After viewing this 3-½ minute video, write a brief description of what a home equity loan is, how it works, what the advantages of a home equity loan over a personal loan, and how it can be used as a savings account.
HELPFUL LINKS: https://myhome.freddiemac.com/buying/?gclid=CjwKCAjw_sn8BRBrEiwAnUGJDhoOHVDNVAR2JvaXFdHSU8c51oqzusk03sYdFlZlxAe2fiav4WfN5hoCJWoQAvD_BwE
https://youtu.be/c0WUw0-EnhQ — *REQUIRED FOR THE LAST QUESTION*
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.
Essays
At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.
Admissions
Thesis Writing Service
Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?
Editing
Custom Papers
Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.
Coursework
Essay Writing
Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.
Coursework
Coourse Work Writing
Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !
Coursework
Dissertation Writing Service
High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.