You are planning on buying a condo in Fairfield, NJ for $460000.00. The purchase is going to be financed by a 30 year conventional mortgage at 4.25 % year interest rate, requiring 20 % down payment.
a. Please calculate the monthly payment required for this loan.
b. In order to pay off the loan early, you would like to pay an additional amount of $350.00 every month. Calculate the loan maturity for this payment. Also, how much more do you need to pay/month if you would to be mortgage free in 15 years?
c. According to FNMA guidelines, please calculate the income required to qualify for the loan under the original condition. Assume property taxes/year to be $9000.00, and the premium for homeowners insurance to be $1000/year.