10. You're interested in a house listed at $213000. You plan to put down 10% as a down payment. a) Legal fees and taxes add $2300 to the closing costs. How much are the closing costs? b) Find the CMHC if it is 2% of the loan. c) Determine the mortgage amount and the monthly payment if it is amortized over 30 year at 5.35% interest.

10. You're interested in a house listed at $213000. You plan to put down 10% as a down payment. a) Legal fees and taxes add $2300 to the closing costs. How much are the closing costs? b) Find the CMHC if it is 2% of the loan. c) Determine the mortgage amount and the monthly payment if it is amortized over 30 year at 5.35% interest.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

14) You are considering borrowing OMR150,000 to purchase a new home. a. Calculate the monthly payment needed to amortize an 8 percent, fixed-rate, 30-year mortgage loan. b. Calculate the monthly amortization payment if the loan in (a) was for 15 years.
Loan Basics Inputs Present value 325,000 Interest rate/year Number of years 4.00% 30 Present Value using a Time Line Year 10 15 20 25 30 Beginning Principal Balance Payment Interest component Principal component
You bought a house for $400,000 paying 10% down and financing the rest with an 8.5%, 30-year mortgage loan. What monthly payments are required to amortize the loan? O $2,768.09 O $2,718.29 O $2,727.09 O $2,708.09.
You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan at 6.55% interest for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much of the first payment is interest?
Suppose you purchase a house for $200,000.00 by getting a mortgage for $180,000.00 and paying a $20,000.00 down payment. (i). If you get a 30-year mortgage with a 7% interest rate p.a. compounded quarterly, what are the quarterly payments? (ii). What would the loan balance be at the end of the first year?
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…
You want to purchase a house valued at $200,000. After a downpayment, you can finance the house with a 20 year mortgage at 4.2% APR, compounded monthly. What percentage of the house will you need to finance in order to have monthly payments of $1,000? Round to two decimal places. What is the downpayment?
You want to buy a $151,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.25% interest for the rest. a) How much is the loan amount going to be? LA $ b) What will your monthly payments be? LA c) How much of the first payment is interest? LA
The original amount that was borrowed for your home mortgage was 175,000 dollars, to be repaid through monthly payments for 25 years at 5.6% APR . a. Find the amount of the monthly payment that would amortize this loan. b. Suppose you have been making your payments for the last 7 years, and would like to apply for a home equity loan to put an in-ground pool in your yard. Calculate what remains to be paid on your mortgage. c. Calculate the equity you have In your home if your home is currently worth $205,000.
After making payments of $901.10 for 6 years on your 30-year loan at 8.9%, you decide to sell your home. What is the loan payoff?
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?
We suggest the use of a spreadsheet to create the amortization tables. You take out a 30-year mortgage for $70,000 at 9.45%, to be paid off monthly. Construct an amortization table showing how much you will pay in interest each year for the first 15 years and how much goes toward paying off the principal. If you sell your house after 15 years, how much will you still owe on the mortgage according to the amortization table? HINT [See Example 8.] (Round your answer to the nearest cent.) $