A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 12 years ago for $68,531. The home was financed by paying 10% down and signing a 15-year mortgage at 9% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 15-year period. The net market value of the house is now $100,000. After making their 144th payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive? Amount of loan: $ (Round to the nearest dollar.)
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 12 years ago for $68,531. The home was financed by paying 10% down and signing a 15-year mortgage at 9% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 15-year period. The net market value of the house is now $100,000. After making their 144th payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive? Amount of loan: $ (Round to the nearest dollar.)
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home
12
years ago for
$68,531.
The home was financed by paying
10%
down and signing a
15-year
mortgage at
9%
on the unpaid balance. Equal monthly payments were made to amortize the loan over the
15-year
period. The net market value of the house is now $100,000. After making their
144th
payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive?Amount of loan:
$
(Round to the nearest dollar.)Expert Solution
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