Precalculus 11 - Mortgages

[June]

Hey there,

I'm working on a project in which we calculate mortgage payments and pick a property to purchase etc. The project instructs me to calculate the principal and interest amounts, which I did (the writing in blue). It then asks me what was used to calculate maximum mortgage amount. I didn't calculate the maximum mortgage amount, we were directed to use online mortgage calculators and used the values from those online calculators to input in our project. How does the maximum mortgage amount correlate with the month interest calculator on the first payment?



Thank you!
June

 

[Denis]

How does the maximum mortgage amount correlate with the month interest calculator on the first payment?

Ypur principal/interest calculations are correct.

I don't understand your question.
The principal/interest calculation has NOTHING to do with "maximum mortgage".
A mortgage amount is calculated from rate, number of payments, amount of payment.

Can you clarify what "they" mean?

 

[June]

Ypur principal/interest calculations are correct.

I don't understand your question.
The principal/interest calculation has NOTHING to do with "maximum mortgage".
A mortgage amount is calculated from rate, number of payments, amount of payment.

Can you clarify what "they" mean?

Hey Denis,

I'm not quite sure as to what the question means. When I asked my instructor for help all she mentioned is look at the underlined portion. Hence why I assumed they must correlate in some way. I have no idea how to answer this question.

June

 

[Denis]

I have no idea how to answer this question.

Neither do I.
Your teacher is kinda weird/evasive

 

[Dr.Peterson]

Hey Denis,

I'm not quite sure as to what the question means. When I asked my instructor for help all she mentioned is look at the underlined portion. Hence why I assumed they must correlate in some way. I have no idea how to answer this question.

June

My impression is that the "maximum mortgage amount" might be something that was worked out in a previous part of the problem (since what is underlined is past tense). If I were sitting next to you, I would long ago have looked through the whole thing to find what has been said about maximum mortgage, since this part says nothing about it at all. Your teacher may just be hinting that you need to pay attention to the whole problem.

 

[Denis]

The only definition of "maximum mortgage" that makes sense to me
is something along the lines of:
"85% of the appraised value of the property" (lender's policy).

 

[June]

My impression is that the "maximum mortgage amount" might be something that was worked out in a previous part of the problem (since what is underlined is past tense). If I were sitting next to you, I would long ago have looked through the whole thing to find what has been said about maximum mortgage, since this part says nothing about it at all. Your teacher may just be hinting that you need to pay attention to the whole problem.

Hey Dr Peterson,

The only portion where maximum mortgage amount is mentioned anywhere else in the project is when I've had to search up a mortgage calculator or various banking sites and see what they offered for a mortgage. I didn't have to calculate any values throughout the project n regards to mortgage until now.

 

[mmm4444bot]

… When I asked my instructor for help all she mentioned is look at the underlined portion. Hence why I assumed [the maximum mortgage amount and first monthly interest calculation] must correlate in some way …

You're looking at the wrong underlined phrase. She means this one:

What information was used to calculate a maximum mortgage amount?

… … I didn't calculate the maximum mortgage amount, we were directed to use online mortgage calculators and [use] the values from those …

… The only portion where maximum mortgage amount is mentioned … is when I've had to search up a mortgage calculator or various banking sites and see what they offered for a mortgage.

Maybe she just wants you to cite the source of the online calculators and the information that you supplied, to get the maximum mortgage amounts recommended by the sites.