Homework answers / question archive / Sale of Home and Mortgage Analysis Maximum Points: 8 The Jeffersons are considering selling their current residence, buying a small home near Avery's parents for $220,000 with a $100,000 30-year mortgage at 3

Sale of Home and Mortgage Analysis Maximum Points: 8 The Jeffersons are considering selling their current residence, buying a small home near Avery's parents for $220,000 with a $100,000 30-year mortgage at 3

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Sale of Home and Mortgage Analysis Maximum Points: 8 The Jeffersons are considering selling their current residence, buying a small home near Avery's parents for $220,000 with a $100,000 30-year mortgage at 3.5%, and investing the net proceeds in their retirement accounts and education accounts. They assume they will incur 2% in transaction costs for the purchase and 6% for the sale. They have asked you the following: A. What will their monthly payment (principal and interest only) be on their new home if their new mortgage is the 3.5% on $100,000 for 30 years that they project? B. How much cash would they have available for other goals if they sell their old house for $330,000 and buy a new house for $220,000? Assume the mortgage they pay off is $56,000 and they pay the transaction costs for both homes from the proceeds of the sale of their current home. Also assume they take a $100,000 mortgage on the new home. C. If the Jeffersons purchase the new house and start a $100,000 30-year mortgage at 3.5% one year from today, what will be the balance on their mortgage after 17 years of payments? This is when they will be turning 65 and thus eligible for Medicare. D. How much in capital gains tax would they owe if they sold their current home for $330,000? Explain your answer. Please show your work for all parts of this question. <Insert Analysis, Recommendations, and Detailed Substantiation Here>