Obtaining a Mortgage: Tutorial
Calculating Monthly Costs
Activity
After an intensive s...
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Mathematics, 23.04.2021 21:00 winwinphyo
Obtaining a Mortgage: Tutorial
Calculating Monthly Costs
Activity
After an intensive search, Philip has narrowed his choices to four houses. Now he wants to buy the one that fits his budget. He has
for the down payment. Use the fixed-rate calculator e to find the monthly payment for each house.
House Purchase Price Monthly Payment Affordability
$250,000
A
B
$200,000
C С
$195,000
$180,000
D
You can see that Philip can afford only house D. Calculating a monthly budget to determine the affordability of your home works
fixed-rate mortgage. You can use a monthly budget for ARMs, but you must recognize that after a certain period, the monthly Ins
will vary as Interests rates change.
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