Final answer:
The buyer's loan amount for an $80,000 home with an 80% loan-to-value ratio is $64,000. The monthly principal payment is $704, calculated based on $11 per $1,000 of principal. Including real estate taxes, the total monthly payment would be $804.
Step-by-step explanation:
The question relates to loan-to-value ratio, monthly payments, and real estate taxes which suggests a mathematical problem, typically dealt with in a personal finance context. To address the student's question, let's first interpret the details provided:
- The purchase price of the home is $80,000.
- The loan-to-value ratio is 80%, meaning that the buyers have taken a loan for 80% of the home's price.
- The monthly payments are $11 per $1,000 of the principal amount.
- The estimated annual real estate taxes are $1,200.
Now let's calculate the loan amount and the monthly principal payment:
- Loan amount: 80% of $80,000 is $64,000. (80,000 * 0.8)
- Monthly principal payment: To find this amount, divide the loan amount by 1,000 and then multiply by the payment rate: ($64,000 / 1,000) * 11 = $704 per month.
To find the total monthly payment, we would need to include interest and real estate taxes, but as the interest rate is not mentioned, we can only include the taxes for now:
The monthly portion of the real estate taxes would be $1,200 divided by 12 months, which equals $100 per month. Therefore, the total monthly amount that includes the principal payment and the real estate taxes would be $704 (principal) + $100 (taxes) = $804.