Karla and her family plans to purchase a house in Dural this year, the selling...
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Karla and her family plans to purchase a house in Dural this year, the selling price for the house is $1.8 million. She wants to borrow 80% of the total capital from the bank using a principal and interest loan and pay 30-year monthly mortgage payments, ANZ bank received her loan application and provided a valuation report based on current market conditions .However, the bank valuation is conservative , stating the market value is only $1.5 million , and to lower the risk from the bank 's side ,it only approves the loan with an LVR ?Loan to Value Ratio? of 70% or less.
If Karla wishes to borrow as much as possible from ANZ bank, how much will her monthly payments be for such a mortgage? The current interest rate from ANZ is 2.19%A. Ignore other costs.
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