There is this 4 bedroom house you like, currently valued at $510,000. You and your spouse can make 20% down payment and amortize the remaining for the next 25 years. You can both make bi-weekly mortgage payments of $1,200 at the beginning of every two weeks. Your local bank has quoted you a mortgage rate of 6.1% APR with a 5-year term. You wish to select fixed interest rate plan for now.
a) Draw a detailed timeline and label all components.
b) Will you and your spouse be able to cover the mortgage with $1,200 bi-weekly payments? If not, what percentage or dollar amount of the current home value should you put in as your down payment to satisfy your mortgage payments?
c) If you wish to put in the 20% down payment, what should be the new bi-weekly mortgage payments you should pay at the beginning of every two weeks?
You and your spouse decided to purchase the house with a 20% down payment after all. Fifte
Buying your first home- Finance Question?quick loan
is everyone doing their homework right now, and is everyone in the same class that requires detailed time lines?
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