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To obtain an FHA mortgage for $50,000 or more, the home buyer must ha
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09 May 2021, 01:01
09 May 2021, 01:01
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57% (02:33) correct
42% (02:41) wrong based on 19 sessions
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To obtain an FHA mortgage for $50,000 or more, the home buyer must have a down payment equal to 4 percent of the first $25,000 of the mortgage amount and 5 percent of the portion in excess of $25,000. At settlement the buyer pay a mortgage insurance premium equal to 3 percent of the mortgage amount. What is the maximum FHA mortgage, if any a buyer can obtain if the buyer has only $6,000 available for the down payment and insurance premium?
(A) $62,500
(B) $71,875
(C) $78,125
(D) $125,00
(E) The home buyer cannot obtain an FHA mortgage
(A) $62,500
(B) $71,875
(C) $78,125
(D) $125,00
(E) The home buyer cannot obtain an FHA mortgage
Re: To obtain an FHA mortgage for $50,000 or more, the home buyer must ha
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10 May 2021, 08:02
10 May 2021, 08:02
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"4 percent of the first $25,000" = \(\frac{4}{100}\)*25000 = 1000
Hence, we are left with 5000.
Now, Let x be the mortgage amount. Then,
\(\frac{5}{100}\)*(x-25000) + \(\frac{3}{100}\)*x = 5000
On solving, we get
5x -125000+3x = 500000
8x=625000
x = 78125
Hence C.
Hence, we are left with 5000.
Now, Let x be the mortgage amount. Then,
\(\frac{5}{100}\)*(x-25000) + \(\frac{3}{100}\)*x = 5000
On solving, we get
5x -125000+3x = 500000
8x=625000
x = 78125
Hence C.
Re: To obtain an FHA mortgage for $50,000 or more, the home buyer must ha
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06 Sep 2024, 22:43
06 Sep 2024, 22:43
1
the first 4% is always on the first 25000
which will always be 10,000 for every amount-
if we take option C
the first 1000 (4% of 25000) + [ 78125 - 25000]x 5%
the excess of 25000 is the remaining amount after the first 25000 is taken out
so 1000 + 2,656.25 = 3656.25
on top of this the 3% premium on the total amount of 78125
total comes up to 6000
which will always be 10,000 for every amount-
if we take option C
the first 1000 (4% of 25000) + [ 78125 - 25000]x 5%
the excess of 25000 is the remaining amount after the first 25000 is taken out
so 1000 + 2,656.25 = 3656.25
on top of this the 3% premium on the total amount of 78125
total comes up to 6000
