5. Charlotte is purchasing a $90,000 house with a 30-year fixed-rate mortgage that has an
interest rate of 8.9%, and she will be making a down payment of $9000, or 10% of the
purchase price, so her mortgage will be for $81,000. The house has been assessed at
$88,000, and the property tax rate in Charlotte's area is 1.35%. Charlotte will make monthly
PMI payments for the first two years of the mortgage based on the following table.
Base-To-Loans
Eixed Rate Lean
30 yrs. 15 yrs.
Arm 2 1
30 yrs.
Year Cap
15 yrs.
9501% to 97%
0.90% 0.79%
wa
90.01% to 95%
0.78%
0.25%
0.925
05155
85 01% to 90%
0.52%
0.23%
0.65%
0.549
85% and Under 0.32% 0.19%
0.37%
26%
Charlotte wants to know how much she will pay in total per month for the first two years of
the mortgage. Let's calculate the amount for Charlotte by answering the following questions.
(4 points: Part 1 - 1 point; Part II - 1 point; Part III - 1 point; Part IV - 1 point)