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Some basic financial math on taxes and mortgages

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Unit Assignment Question 1 a) Given these options, the 30-year mortgage should be selected, because it offers a monthly payment that fits the budget, whereas the 25-year mortgage does not. Question 1. Cost Downpayment Principal rate monthly rate Monthly Pmt b) PITI P & I Tax Insurance Monthly PITI Annual PITI c) Principal Balance Month 1 Month 2 Month 3 Principal...

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Unit Assignment

Question 1

a) Given these options, the 30-year mortgage should be selected, because it offers a monthly payment that fits the budget, whereas the 25-year mortgage does not.

Question 1.

Cost

Downpayment

Principal

rate

monthly rate

Monthly Pmt

b) PITI

P & I

Tax

Insurance

Monthly PITI

Annual PITI

c) Principal Balance

Month 1

Month 2

Month 3

Principal Start

Interest

less Payment

Principal End

After three payments, the remaining principal will be $206,705.

d)

Assessment

Tax Rate

Taxes

The new taxes will be $2719.50

Question 2.

a)

Total Budget

Valuation

Tax Rate

The taxes per $100 are $1.10, rounded, or $1.097 unrounded.

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