Web Application Chapter 11 page 469

Tina and Grant Martin are interested in purchasing a new home in Oklahoma. They are first-time buyers. The couple knows that they need to consider not only the cost of the house they want to buy, but also the interest rate, taxes, and insurance. Tina and Grant are interested in a 30-year fixed-rate mortgage. The house they would like to buy is appraised at a value of $195,000, however, they were able to negotiate a purchase price of $180,000. They plan to make a down payment of 10% of the purchase price. The couple is willing to submit all needed information, including information about their income, to process the loan.

Start at the quote.yahoo.com Web site, and under "Loans" click on Mortgage Quotes. Use the information from the paragraph above to answer the nine questions located on the Mortgage Loan page. Using the results from the loan search, answer the following questions.

1. Will the Martins need to purchase mortgage insurance (PMI)? Explain why or why not.

2. What is the lowest interest rate listed?

3. What tips are recommended to the couple to lower their monthly mortgage payment?

Since interest rates can change frequently, it is important to include the date of the information in your answer.

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