A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrowermakes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increasesto 7.5 percent APR.What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2decimal places.)Monthly paymentWhat are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2decimal places.)Monthly payment>2 DTRENE VAR TVUNGS2006-E-E

Loan value: $279,000Number of years: 30Teaser rate for 2 years: 4.5%Interest rate for the rest of…

Answered: a $279,000 30-year mortgage with a…

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a $279,000 30-year mortgage with a teaser rate. In

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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Question

A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower
makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases
to 7.5 percent APR.
What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2
decimal places.)
Monthly payment
What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2
decimal places.)
Monthly payment
>
2 D
TRENE VAR TVUNG
S
2006-
E
-
E

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Use PMT = to detemine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $200,000 20-year - nt 1+ fixed-rate mortgage at 3.5%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. a. The monthly payment is $E (Do not round until the final answer, Then round to the nearest cent as ccess aUbra Success Resou More
Consider a Sh. 124,000, 7.00%, 30-year, constant payment mortgage (CPM) with monthly payments. Required a) What is the required monthly payment on this mortgage?
Determine the outstanding principal of the given mortgage. (Assume monthly interest payments and compounding periods.) HINT [See Example 7.] a $100,000, 23-year, 4.9% mortgage after 10 years
What is the monthly payment for a $103500 thirty-year mortgage at 5% APR?
Consider a $100,000 30-year, fixed-rate mortgage with an annual interest rate of 5.50% and monthly payments. How much of the total expenses on mortgage payments go toward interest during the first three years (round to the nearest dollar)?$2, 540 $10, 220 $15,858 S4,274 $16, 167 $19, 172 $3,583
3. For a house price of $775, 000 use the following information to calculate: * 5% down payment and mortgage the rest * bank offers a 1.95 % interest rate for a 5-year fixed rate mortgage based on an amortization period of 25 years. a)Calculate the down payment. b) Subtract the down payment. c) Amount of mortgage ( include the mortgage insurance) d) Use a graphing calculator to determine monthly mortgage payment. PV PMT FV Annual Rate Periods Compounding : SEMI-ANNUALLY e) the total amount repaid to the bank f) the total interest paid over the life of the mortgage h) Add in down payment. Calculate the total amount to own the home
V4. A $200,000 30 year mortgage with a contract rate of 8.94%, $3000 closing costs (lawyer, appraisal, and transfer tax) and $1,000 in discount points (i.e mortgage setup fee). The monthly mortgage payment is determined to be $1600. what will be the effective borrowing rate if the borrower decides to pay off the loan at the end of year 8? Assume that the mortgage is based on monthly compounding.
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 mortgage
Consider a $180,000 15-year, fixed-rate mortgage with an annual interest rate of 4.70% and monthly payments. How much of the total expenses on mortgage payments go toward principal during the first two years (round to the nearest dollar)? $14,139 $5,739 $16,666 $25,663 $33,491 $17,339 $16,152 $22,755
Calculate the monthly payment for a 30 year mortgage of $100,000 at 6% interest. Solve for PMT
Determine the outstanding principal of the given mortgage. HINT [See Example 7.] (Assume monthly interest payments and compounding periods. Round your answer to the nearest cent.) a $100,000, 31-year, 4.9% mortgage after 10 years

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