8. You are applying for a mortgage loan at 5.75% over 30 years with monthly payments. The home youare considering is at a price of $229,000. Lenders are offering 80% loan to value mortgages to you. Whatwill be your monthly mortgage payment for principal and interest? a. $623 b. $653.81 c. $1,069 d. $1,011.649. 9. Same facts as #8, what will be the balance of the loan after you have paid for a full 10 years?a. $109,877 b. $145,540 c. $150,129 d. $152,276

Explanation of Answer (8) : Step 1:To calculate the monthly mortgage payment for principal and…

Answered: 8. You are applying for a mortgage loan…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 7FPE

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You are considering purchasing a new home. You will need to borrow $280,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage (240 months) at 9% APR (0.75% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: O A. $2,015 В. $3,527 C. $4,030 D. $2,519
You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How big of a loan can you afford? $ 142,944 b) How much total money will you pay the loan company? $ 486,012. X c) How much of that money is interest? $ 343,058.82 X
You have just taken a 30-year mortgage loan for $200,000. The annual percentage rate on the loan is 6%, and payments will be made monthly. Estimate your monthly payments. A). $1,245.55 B). $1,188.07 C). $1,205.01 D). $1,199.10 E). $1,263.89 in excel
Suppose you are buying your first home for $210,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Select the correct answer. a. $1,231.53 b. $1,233.53 c. $1,232.53 d. $1,234.53 e. $1,230.53
Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.40% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Group of answer choices $831.93 $857.64 $753.30 $714.27 $794.39
You are considering purchasing a new home. You will need to borrow $280,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage (240 months) at 9% APR (0.75% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: O A. $2,015 O B. $3,527 O C. $4,030 O D. $2,519
You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 7% interest. a) How big of a loan can you afford? %24 b) How much total money will you pay the loan company? c) How much of that money is interest? %24
Suppose you purchase a home and obtain a 15-year fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months I %: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12 b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $ d) How much is your outstanding balance after the first month’s payment? HINT: Principal - Amount Applied to Principal Outstanding Balance after first payment: $
Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a monthly payment for the next 30 years, with an annual interest rate of 3%. What will be the amount of your monthly mortgage (i.e., home loan) payment? answer choices $1,890.37 $1,400.01 $1,475.61 $1,228.14
4. Your family recently obtained a 30-year (360-month) $500,000 4.875 percent fixed rate mortgage. a. What is the monthly payment of this mortgage? Show your work by showing your financial calculator inputs and output. b. What would be the total interest on this mortgage if you pay off this mortgage in 10 years? What will be your payoff amount (your remaining balance) after 10 years? Show your work. c. How would your monthly payment change if you take out a 15-year mortgage at 3.75 percent instead? What is your total interest after 10 years if you go with the 15-year mortgage?
Suppose a bank offers you a 10% interest rate on a 20-year mortgage to be paid back with monthly payments. Suppose the most you can afford to pay in monthly payments is $700. How much of a mortgage could you afford? $72,537.23 $75,732.25 $76,237.53 $76,375.32
You want to buy a house and will need to borrow $220,000. The interest rate on your loan is 5.47 percentcompounded monthly and the loan is for 20 years. What are your monthly mortgage payments?Multiple ChoiceA. $1,585.11B. $1459.31 C. $1,530.30D. $1.502.78E. $1,509.63

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