A pass-through is issued with the following characteristics:• Mortgage pool: $5 million•All mortgages are FRM at 10% per year, 3-year maturity, yearly paymentPass-through: $5 million, yearly payment•Fee payment: 1.5% of outstanding loan balance• Assume prepayment rate: 3% of the mortgage pool for the 1st year, 5% for the2nd yearFrom the information above, we have the following table:Year1Beginning Mortgage Interestbalancepayment payment$5,000,000 $2,010,574 500,000 $1,510,574 150,000PrincipalpaymentPre-paymentFeepayment$75,000 $1,935,574 $3,339,Payment to Endinginvestors balance2$3,339,426 1,924,146 $333,943 $1,590,203 $166,97150,091 $1,874,054 1,582,231,582,252$1,740,477 $158,225 1,582,252$0$23,734 $1,716,743What is the value of this pass-through at 8% discount rate?$5,168,900$4,339,025$5,000,000$4,761,703

present value of the future cash flows from the pass-through using the following formula:Present…

Answered: A pass-through is issued with the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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This Question: Complete the first two months of each amortization schedule for a fixed-rate mortgage. Mortgage, $144,800; Interest rate, 6.9%; Term of loan, 16 years Fill out the amortization schedule below and round all values to the nearest cent. 12 Monthly Mortgage Payment Formula: R= 121 12 1- 12 +r Interest Payment Formula: I=P 12 Payment Number Total Payment Interest Principal Payment Balance of Principal $144,800 Payment (a) S (e) S (b) $ () S[ (c) S (9) s (d) s (h) S 2.
2. A mortgage has the following terms: Amount: $750,000 Rate: 6.25% Amortization (Years): 30 Term (Years): 20 Please determine the following: A. What is the Monthly Payment? B. In preparing an Income Statement, what is the Interest Expense for years 1-5? C. What is the Principal Balance at the end of year 6? D. What is the value of the loan at the expiration? E. If rates remain constant (flat), what would the benefit be to refinance this loan after year 10?
Consider a home mortgage of $17500 at a fixed APR of %6 for 15 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. Please show all work computaion explanation formulas clearly with steps
Consider a 30-year home mortgage of $100,000 at 6% per year. What is the monthly payment? Use Theorem 1 as attached to make an amortization schedule of the first 6 months: Month (k) Principal P(k) Interest I(k) Balance due B(k) 1 2 3 4 5 6 where P(k) is the amount paid to the principal in the k’th payment, I(k) is the amount paid to interest in the k’th payment, B(k) is the balance due after the k’th payment.
Assume we have a $1 million 15 year mortgage with monthly payments beginning in exactly one month; the interest rate is 6%. Determine the monthly mortgage payment under the following assumptions. In each case verify your calculation by giving the relation between the pay rate and the accrual rate. It is an 10 loan O Monthly payment: $5000; pay rate: 0.5%; accrual rate: 0.5% O Monthly payment: $5000; pay rate: 6%; accrual rate: 6% O Monthly payment: $5000; pay rate: 0.05%; accrual rate: 6% O Monthly payment: $60000, pay rate: 6%; accrual rate: 6%
Given the following information of the mortgage pool that backs a MPT, what is the regular scheduled payment in month 1 of the security? Use WAC as the mortgage rate and WAM as the number of periods for your calculations. Round your final answer to two decimals. • 30 year FRM, fully amortizing, monthly payments • Loans seasoned for 3 months before entering pool • WAM: 357 • WAC: 4% • Servicer/Guaran • Prepayment assumption: 75% PSA
1. Excel: Complete the amortization table provided in the Excel document posted in Ivylearn in the homework area by setting the appropriate values for a $165,000, 30-year mortgage at 4.5% interest and using Excel's autofill (drag) feature to fill in the cells to the end of the mortgage period. Use this to answer the following: a. How much of the first payment goes towards the principal? How much goes toward the interest? b. How much of the last payment goes towards the principal? How much goes toward the interest? c. Find the total interest paid by the end of the mortgage. d. How much will be owed on the mortgage after making payments for 10 years (hint this is 120 months)? e. How much interest has been paid total on the mortgage at the end of 10 years? f. How many months will it take to pay at least half of the principal?
Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 an annual interest rate of 4.29%. (a) In which month does the amount of principal in a monthly payment first exceed the amount of interest? b) How much interest is repaid for the term of the loan? (Round your answer to the nearest cent.) tf the loan amount was $750,000 instead of $500,000, would the month in which the amount of principal in a monthly payment first exceeded the amount of interest change? Yes No
Please show how to solve a. b. and c. using the information below and Excel. Interest-only mortgage with monthly payments and loan amount: $56,000; Term: 15 years; Annual interest rate: 7.5% a. What is the total payment in the 180th month? b. What is the outstanding balance at the end of 10 years (120 months)? c. What is the total interest payment during the entire loan term (180 months)?
A fully amortizing mortgage loan is made for $84,000 at 6 percent interest for 25 years. Payments are to be made monthly. Required: a. Calculate monthly payments. b. Calculate interest and principal payments during month 1. c. Calculate total principal and total interest paid over 25 years. d. Calculate the outstanding loan balance if the loan is repaid at the end of year 10. e. Calculate total monthly interest and principal payments through year 10. f. What would the breakdown of interest and principal be during month 50?
Consider that you take out a $250,000, 15-year mortgage with 3.5% interest with monthly payments. Create the amortization schedule. (Show the first 3 payments) Payment # Payment Amount Interest Paid Principal Paid Remaining Balance
Using a spreadsheet program, create an amortization schedule for a 30-year mortgage of $500,000 at an annual interest rate of 4.24%. (a) In which month does the amount of principal in a monthly payment first exceed the amount of interest? _____ (b) How much interest is repaid for the term of the loan? (Round your answer to the nearest cent.) _____$ (c) If the loan amount was $750,000 instead of $500,000, would the month in which the amount of principal in a monthly payment first exceeded the amount of interest change?

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