You are thinking about buying a house. you find one you like that costs $400,000. you learn that your bank will give you a mortgage for $320,000 and that you would have to use all of your savings to make the down payment of $80,000. you calculate that the mortgage payments, property taxes, insurance, maintenance, and utilities would total $1920 per month. which of the following is true regarding your calculation of the cost of owning the house?

a. it should not include maintenance, since homeowners often use their own time to fix things around the house instead of calling a professional.

b. it should include your monthly income, since you must know the source of the money when trying to calculate costs.

c. it should include the opportunity cost of the money used to make the down payment. this money could be earning interest in a bank.

d. it should not include property taxes, since that is money that goes directly to the government and is no longer in the market.

given the information above, if the interest rate on your savings account was 4% a year, then the yearly opportunity cost of using this money for a down payment would be equal to

answer the two parts . and show work.

answer; buying the bill at a discount from the face value to be received at maturity;

answer; /// the above statement is (false);

answerthe above statement is false;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.