# fin 331 homework 2 | Business & Finance homework help

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.

Consider the listing at 4815 Catoctin San Diego, CA 92115
Price \$475,000
Bob &amp; Betty Homebuyers want to make an offer on this property at the list
price. Bob earns \$48,000 per year and Betty earns \$54,000 per year. They
have very good credit. Their monthly payments are \$200 for student loans,
\$350 for their car payment and minimum credit card payment of \$50. They
have savings of \$125,000. The balance of their student loans is \$40,000.
Insurance on this house will cost them \$900 per year. Property taxes are
calculated at 1.25% of the purchase price per year. Monthly mortgage
insurance is required if the down payment is less than 20%.
In addition to prepaid finance charges, they will have other closing costs of
\$3,000.
You are to evaluate 4 financing scenarios for them. You must determine if
they qualify for each of them. They can get loan approval if their housing
ratio is less than 32% and their total debt to income ratio is less than 43%.
1. Loan A – Fixed 30 year loan at 3.25% for 80% of the purchase price.
Prepaid finance charges will be \$1,500 plus 1.60 points on the loan.
2. Loan B – Fixed 30 year loan at 3.625% for 80% of the purchase price.
Prepaid finance charges will be \$0 plus 0.00 points on the loan. Higher
rate, no closing costs.
3. Loan C – Fixed 30 year loan at 3.50% for 90% of the purchase price.
Mortgage insurance will cost 0.44% of the loan amount per year.
Prepaid finance charges will include the mortgage insurance (included
in calculation of APR), plus \$1,500 plus 0.25 points on the loan.
4. Loan D – Intermediate adjustable rate mortgage that has a
fixed interest rate for the first 5 years at 2.875% for 80% of the
purchase price. Prepaid finance charges include 1 point of the
loan amount plus \$1,500. This loan has an initial interest rate
change cap of 5%, subsequent change caps of 2%/year and a
life cap of 5%. The lender will use an interest rate of 3.50% to
calculate the loan payment to determine their debt to income
ratio since there may be payment shock when the rate changes
after 5 years. Name:
Use the Excel Workbook provided with this assignment to complete your
analysis. 20% of your grade will be determined by the use of Excel to
enter the calculated values manually, but your score will be reduced to a
total of 8 out of 10 points IF all of your answers are correct.
Last Name, First Name” Which loan would you recommend and why?
What is the highest possible payment on the ARM (Loan D) when the interest
rate adjusts at the end of 5 years?
Loan C – This option for the Homebuyers is to put down 10%. They could use
their remaining savings to pay off their student loans. If they pay off their
student loans, they will no longer have the monthly payment on their student
loans. For this option, assume that they pay off their student loans and will
qualify without the payment on their student loans. This will reduce their
total debt to income ratio. Should they do that? Why?

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Education
Loved the fact that the writer took note of the corrections given and did a superb job. Good work
Customer 463679, March 3rd, 2023
SEO
A job well done
Customer 463679, April 28th, 2023
Education
Good work.
Customer 462281, April 14th, 2022
ASCI 491: Operational Applications in Aeronautics
Well articulated.
Customer 457731, April 12th, 2022
Foundations of Language and Literacy for Diverse Prekindergarten and Kindergarten Learners
Always cite used resources.
Customer 454463, May 2nd, 2022
Retail
great
Customer 463473, November 14th, 2022
Nursing
thank you so much
Customer 453933, January 25th, 2020
Other
Customer 462797, April 4th, 2022
Accounting & Finance
Good blog design and content.
Customer 452441, April 15th, 2022
SEO
good
Customer 463813, May 11th, 2023
Medical Terminology
Thank you
Customer 454783, April 12th, 2022
SEO
Great work
Customer 463647, May 3rd, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend