A Texas homeowner with a homestead valued at $400,000 and no existing liens takes the maximum home equity loan at 7% annual interest. What is the monthly interest payment?
Correct Answer
A) $1,867
Maximum home equity loan = $400,000 × 0.80 = $320,000. Monthly interest = $320,000 × 0.07 / 12 = $22,400 / 12 = $1,866.67 ≈ $1,867.
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A Texas veteran purchases land through the Veterans Land Board (VLB) program for $180,000. The VLB loan requires a 5% down payment. How much is the veteran's down payment?
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A Texas homeowner has a homestead valued at $650,000 with a first mortgage of $400,000. She takes the maximum home equity loan allowed and the lender charges 2 discount points. How much will she pay in discount points?