loan term
Go to calculators.aol.com/tools/aol/home01/tool. fcs and click “How much can I borrow?”
a. Input $3,000 wages, $500 in other income, $300 in auto loans, $100 for student loans, $125 for other loans, a desired interest rate of 9%, a 15-year loan term, a 5% down payment, no other debts, a $200 monthly credit card payment, $1,500 property tax, and $300 property insurance. What are the conservative estimates and aggressive estimates of what you can afford to borrow to finance the purchase of a home?
b. Now change the interest rate to 10%. What is the difference in monthly payments on the loan?
c. Now change the loan term to 30 years. What is the difference in monthly payments on the loan?