Question 7 0.15 Points Based on the mortgage stress test, a borrower has to qualify based on the higher of contract rate + 2\% or 5.25\%. Neera can afford to pay $2400 per month on a mortgage over 20 years amortization. Assuming the best rate she can get from her bank is 4\% compounded semi-annually for the next three years, what is the maximum mortgage amount the bank can lend her? A) $334 994 B) $357 840 C) $397 189 D) $336 989
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Breanna O.
Three years ago, the Jones purchased a house for $675,000. They made a down payment of 20% and took out a mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Question 1 options: $2,612 $2,618 $3,264 $15,746 Three years ago, the Jones purchased a house and took out a mortgage of $500,000 from the BMO bank. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. The bank calculates their monthly payment should be $2,418. How much of the 5th payment was interest? Question 2 options: $1,333.33 $6,593.61 $1,312.90 $1,205.10 Three years ago, the Jones purchased a house and took out a mortgage of $500,000 from the BMO bank. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. The bank calculates their monthly payment should be $2,418. How much interest did they pay in the 3rd year of the mortgage? Question 3 options: $14,187.31 $1,318.73 $45,802.19 $14,828.69 Three years ago, the Jones purchased a house and took out a mortgage of $500,000 from the BMO bank. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. The bank calculates their monthly payment should be $2,418. What percentage of the mortgage have they paid off after making 3 years of payments? Question 4 options: 2.84% 8.25% 9.16% 91.75% The Smiths want to buy a condo in Surrey. Banks use the rule that no more than 32% of gross income can go towards paying the mortgage, property taxes, heating costs, and HALF of the condo fees. Their gross income is $10,000 per month, property taxes $1,800 per year, heating costs $50 per month, and condo fees $400 per month. What is the maximum monthly mortgage payment they could afford? Question 5 options: $2,800 $3,000 $3,600 $3,800
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