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.
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- Suppose Bank A offers a 201,000, 20 year , 2.1 % fixed rate mortgage with closing costs of 1900 plus 2 points. what is the closing cost associated with this mortgageUse to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $180,000 -nt mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 12.25% with closing costs of $1700 and 1 point. Mortgage B: 15-year fixed at 11.25% with closing costs of $1700 and 5 points. Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) O A. Mortgage B has a larger total cost than mortgage A by $ B. Mortgage A has a larger total cost than mortgage B by $ P.Use PMT formula to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $165,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 6.25% with closing costs of $1800 and 1 point. Mortgage B: 15-year fixed at 5.25% with closing costs of $1800 and 2 points. Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) B. Mortgage A has a larger total cost than mortgage B by $_________.
- P Use to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a nt $150,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 30-year fixed at 9.25% with closing costs of $2900 and 1 point. Mortgage B: 30-year fixed at 8.25% with closing costs of $2900 and 5 points. Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) O A. Mortgage A has a larger total cost than mortgage B by $ O B. Mortgage B has a larger total cost than mortgage A by $ Help Me Solve This View an Example Get More Help - Clear All Check Answer MacBook Air >> 吕口 F3 esc F10 F1 F12 F1 F2 F5 F6 F7 F8 2# $ A & 2 3 4 6 7 8Use PMT formula to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $165,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 6.25% with closing costs of $1800 and Mortgage B: 15-year fixed at 5.25% with closing costs of $1800 and Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) A. Mortgage B has a larger total cost than mortgage A by $_________. B. Mortgage A has a larger total cost than mortgage B by $_________.Suppose you had to choose between a 9% 25-year mortgage or a 8.5% mortgage with 2 discount points. Assume you wished to borrow $200,000. How long should you wait before prepaying the loan, if you avail the discount points?
- 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.Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…Assume a borrower is purchasing a property for USD 100,000and faces two possible loan alternatives. A lender is willingto make an 80% first mortgage loan, or USD 80,000, for 25years at 12% interest. The same lender is willing to lend 90%, or USD 90,000, for 25 years at 13%. Both loans will have afixed interest rates and CPM. How should the borrowercompare these two alternatives?.
- Use P ÞA to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $145,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 6.25% with closing costs of $2200 and 1 point. Mortgage B: 15-year fixed at 4.5% with closing costs of $2200 and 5 points. Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) OA. Mortgage A has a larger total cost than mortgage B by $ O B. Mortgage B has a larger total cost than mortgage A by $TOTAL INTEREST PAID. You are considering purchasing a home that requires $450,000 mortgage at 5.25%. Using a simple interest Loan amortization schedule:A) What is the total amount that you would pay for the 30 year mortgage, including interest?B) What is the total amount that you would pay for the 15 year mortgage, including interest?C) What is the difference in the total interest paid between the two different maturities?Give typing answer with explanation and conclusion If the annual payment mortgage constant for an amortizing loan is 10.6%, and the loan amount is $25,000,000, what is the annual payment?