A homeowner has been paying a monthly mortgage payment of $762.03 on a 35-year loan at a fixed annual interest rate of 5.5%. After making payments for 8 years, the homeowner must sell the house and move to another state for a new job. What is the payoff for the mortgage?

To buy a new house, you must borrow $140,000. To do this, you take out a $ 140,000, 30-year, 9 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 9 percent interest on the declining balance. How large will your annual payments be?

When applying for a mortgage, find one that allows you to contribute more money than the required monthly payment. The following problems illustrates why. Let’s say that you have a 30- year $152,700 fixed-rate mortgage at 3.89% interest compounded monthly. Instead of paying the regular monthly payment for the mortgage, you decide to add an additional $160 to each of your monthly payments. By paying the extra $160 a month, the extra amount in each payment is applied directly to reducing the principal. This means that (1) the length of the loan is reduced since the principal will be reduced faster (than if no extra amount was paid with your monthly payment) and (2) you eventually pay less in interest than if you were to pay the only regular monthly payment required. Answer the following: Find out how many years it will take you to pay off the loan if you were to pay the additional $160 with each monthly payment? Use the TVM Solver. How much money will you save in interest if you pay…

You are buying a house and the mortgage company offers to let you pay a "point" (1% of the total amount of the loan) to reduce your APR from 6.50% to 6.25% on your $400,000, 30-year mortgage with monthly payments.  If you plan to be in the house for at least five years, should you do it?

You have $25,000 available for a down payment on your new home. You have determined that you can afford a monthly mortgage payment of $1,250 for principal and interest. If thirty-year terms (360 months) are available for home-financing at 4.0%, what is the highest-valued home you can afford to the nearest $1,000 (do not forget your down payment!). O $292,000 O $287,000 O $262,000 O $237,000 O $242,000

Suppose a homeowner is evaluating two mortgages, both of which are arrangements for repaying a loan of $200,000. Mortgage C requires monthly payments at the end of each month for 15 years at a stated annual rate of 6%. Mortgage D has monthly payments, paid at the beginning of each month for 18 years, at a stated annual rate of 5.5%. Mortgage C has a lower monthly payment than Mortgage D. False True

A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% APR compounded monthly and level monthly payments. At the end of year 10, she unexpectedly won a lottery and received an after-tax cash of $10,000. She used that cash to pay down the principal of her mortgage loan and will keep paying the same monthly payment till she pays off the mortgage loan. How many more months will she has to pay

You buy a house for $1,200,000 using a 30-year mortgage.  The annual interest rate is 3%.  Payments are made at the beginning of the time period. What is the total principal paid over the 30 year life of the mortgage?

I. M. Greedy Mortgage Bank offers you a $60,000, eleven-year term loan at a 5% annual interest rate to help you buy a home.  What will your annual loan payment be?

Suppose that you purchased a house with a $140,000 mortgage (30-year fixed at 6% with a payment of $839.37) five years ago. The loan balance is currently $130,276 and you can refinance that balance at 5% with a new 30-year fixed rate mortgage. You anticipate being in the house for another six years, at which point the balance on your current mortgage would be $114,032. If you refinanced at the terms above, what would be the difference in the loan balances? O $1,329 O $1,871 O $2,471 O $3,132 O $3,860 2