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- 1. You have just obtained a commercial mortgage for $6.25M with a 5-year term, 25-year amortization period and 6.50% mortgage interest rate. (a) Construct an amortization table for the term of the loan assuming annual payments. What is the annual payment? What is the balance at maturity? (b) What is the e¤ective cost of borrowing if the borrower pays an origination fee of $30,000? (c) The borrower can repay the balance of the loan at any time prior to its maturity, but must pay a penalty of 5% of the outstanding balance. What is the cost of borrowing if the borrower pays an origination fee of $30,000 and pays off the remaining balance of the loan after making payments for 4 years?Suppose you are buying your first condo for $190,000, and you will make a $10,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 3.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $808.28 $853.18 $527.78Suppose you are interested in taking an FHA mortgage loan for $250,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully-amortizing mortgage loan is 5% and the term is 30 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP? A. $2,500.00B. $1,119.41C. $159.67D. $13.42
- 2. If the interest rate on a 30-year mortgage is fixed at 4% and if a monthly payment of $900 is the maximum that the buyer can afford, what is the maximum mortgage load that can be made under these conditions? Write out a difference equation modeling the scenario and show all work to receive full credit.Your current mortgage payment is $1,558.50 per month, with a balance of $217,800. Suppose you have a chance to refinance at a certain bank with a 30-year, 5.75% mortgage. The closing costs of the loan are application fee, $90; credit report, $165; title insurance, 0.4% of the amount financed; title search, $360; and attorney's fees, $570. a) Calculate the total refinance closing cost (in $). (Round your answer to the nearest cent.)You are interested in a fixed-rate mortgage for $399,500 and need to choose the between options: a 15-year mortgage or a 30-year mortgage. The current mortgage rate is 6.5% for the 15-year mortgage, and 3.75% for the 30-year mortgage. Both require a 15% down payment. (Hint: make use of the amortization formula from Chapter 12). (a) What are the monthly principal and interest payments for EACH loan? Show your work. (b) What is the total amount of interest paid on EACH loan? Show your work. (c) Overall, how much more interest is paid by choosing the 30-year mortgage? Show your work.
- The price of a condominium is $187,.000. The bank requires a 5% down payment and one point at the time of closing. The cost of the condominium is financed with a 30-year fixed-rate mortgage at 6.5%. Use the following formula to determine the regular payment amount. Complete parts (a) through (e) below. P. PMT = nt7 a. Find the required down payment. b. Find the amount of the mortgage. $4 c. How much must be paid for the one point at closing? $4 (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). $4 (Round to the nearest dollar as needed.) Enter your answer in each of the answer boxes. 9:56 PM 82°F Partly cloudy ^ 6/30/2021 99+ O Type here to search DELL PgDn Home Delete PrtScr Insert F11 F12 F9 F10 F7 F8 F5 F6 F2 F3 F4 Num Lock Esc F1 Backspace & 林 %24 8. 3. 4. 6. R WE Enter K L F 會Suppose Bank A offers a $201,000, 20-year, 2.1% fixed rate mortgage with closing costs of $1900 plus 2 points. What are the closing costs associated with this mortgage? Answer to the nearest dollar.Consider a mortgage loan where the periodic payment is 1 and the per period mortgage interest is 5%. For simplicity, the maturity of the loan is infinite. That is, the borrower has to pay the loan perpetually. The per period market interest rate is 10%. Calculate the market value of the loan. (Note: When an investor buys the loan, she can receive the value of one starting from the next period.)
- You plan to purchase a $310,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.10 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage?You want to get a commercial real estate mortgage of $6055209. You are offered a monthly payment loan with 5.75% interest and a 25 year amortization schedule with a balloon payment at the end of 7 years. What will be your monthly mortgage payment? State your answer as a number rounded to two decimal points (e.g. if the answer is $2345.123, write 2345.12)You plan to purchase a $320,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.20 percent. You will make a down payment of 15 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Amortization Schedule Month 1 2 3 179 180 Construct the amortization schedule for the mortgage? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Req 82 Total Interest Amortization Schedule for the 15-Year Mortgage Interest Cumulative Principal Principal 272,000.00 270,999.26 Cumulative Interest Ending Balance