# Mortgages and Taxes Assignment

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### Document Description

a) You are purchasing a business building valued at \$275,000. You can find a mortgage at 5% if you can put 20% down. You believe your business can support a \$1,300 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 \$2,600 and the insurance for the building will be \$1,600 per 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 1.80 per \$100 of assessed valuation?

Question 2:

a) Vonte Canyon, Arizona (a fictitious city) has a new budget of \$99,895,000 to pay for police, fire, schools, and government, among other expenses. The total assessed valuation (based on 60% of mar

## Written By

Studypool Tutor
Mortgages and Taxes AssignmentQuestion 1:a)I would pick the 30-year elective in light of the way that the routinely planned portion would be\$966.28 and would leave space to pay for the costs and insurance. In the event that I by onemeans or another happened to pick the 25-year decision, the portion would be \$1052.26 Whichis over my arranged entirety and I would without a doubt be endeavoring to pay for the costsand securityb) Monthly Mortgage PaymentYearly Taxes\$966.28\$2,500.00Yearly Insurance\$1,900.00PITI\$1,332.95966.28+((2500+1900)/12) = 1332.95c)180,000 * 0.05 = 9000

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