MM 255 MM255 UNIT 9 ASSIGNMENT CALCULATING MORTGAGES AND TAXES - KAPLAN
Kaplan MM255 Unit 9 Assignment Calculating Mortgages and Taxes
Question 1: (20 Points)
a) You are purchasing a business building valued at $385,000. You can find a 30-year mortgage at 4.52%, or a 25-year mortgage at 4.2%, if you can put 16% down. You believe your business can support a $1,700 a month mortgage payment (not including taxes and insurance). Should you select a 25-year mortgage or a 30-year mortgage? Tell your reasons.
b) If your yearly taxes for the building will be $2,160 and the insurance for the building will be $1,722.16per year, what will the total of the PITI for the mortgage be?
c) Compute what the unpaid principal balance will be after you’ve made three payments on the mortgage.
d) What will the new annual taxes on the property be if the assessed valuation is 60% of purchase price and the new tax rate is $1.55 per $100 of assessed valuation?
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