(b) What is the total amount of interest EACH loan? Show your work. (c) Overall, how much more interest is choosing the 30-year mortgage? Show

Q: The effective annual profit rate on a mortgage with monthly payments is 9.38%. What is the monthly…

A: Given the effective annual profit rate of 9.38%, we can calculate the monthly profit rate using the…

Q: Assume that a borrower is expected to prepay a loan at the end of Year 5. Based on the following…

A: The Effective Cost of Borrowing is the true and comprehensive cost associated with obtaining and…

Q: Find the current annual interest rate offered on a 30-year fixed-rate mortgage for $100,000. Then…

A: The annual interest rate offered on a 30 year fixed rate mortgage is 3.24% This is as per Forbes…

Q: What was the interest rate on a 3.5-year loan, $1000 loan if the simple interest paid was $297.50?

A: Interest rate = (Total interest / amount) * (1/time)

Q: Over the life of a fixed payment amortized loan, such as a conventional mortgage, the proportion of…

A: Conventional loans are the types of home loan which are not secured by the government securities. On…

Q: You took out a 25-year constant amortizing mortgage of $373,000 with an interest rate of 4.25%? What…

A: Monthly payment amount is calculated using following equation Monthly payment = rm×A1-11+rmn×m…

Q: He then asks you to describe the advantages and disadvantages of a 15-year loan versus a 30-year…

A: Mortgages:-A mortgages is an loan that is used to purchase various assets like home, land etc. In…

Q: If $500 is borrowed and the interest after 18 months is $45, what is the annual interest rate for a…

A: Given:

Q: mortgage for a condominium had a principal balance of $44,100 that had to be mortized over the…

A:

Q: Use PMT = to determine the regular payment amount, rounded to the nearest cent. The cost of a home…

A: Cost of House is $110,000 Time period is 20 years or 20×12=240 months Interest rate is 3%  Monthly…

Q: Mary Ott is going to borrow $5,800 for 60 days and pay $159 interest. What is the effective rate of…

A: Solution:Effective rate of interest means the annual effective rate of interest after effect of all…

Q: In addition to the UFMIP (up-front mortgage insurance premium), the owner-occupant borrower who…

A: Federal Home administration (FHA) imposes an additional insurance clause to mortgage loans in Loan…

Q: What is the actuarial rate for a simple loan of $1,500 that requires a repayment of 2,000 in 5

A: In this we have to calculate effective interest rate by use of present and future value.

Q: 4. Your family recently obtained a 30-year (360-month) $500,000 4.875 percent fixed rate mortgage.…

A: Loan amount (L) = $500000 Duration (n) = 360 months r = 4.875% per annum = 0.40625% per month Let M…

Q: Consider a home mortgage of $150,000 at a fixed APR of 6% for 25 years. a. Calculate the monthly…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: What do we know about a loan, which is said to have annuity payments? a. This loan has annual…

A: The loan can be referred to as the debt amount that the borrower takes till certain maturity period…

Q: Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it…

A: Credit Score is a 3-digit value which is assigned to an individual that has taken advances from…

Q: John wants to "roll in" or finance the loan fee of $5, 200 into the loan amount which would make the…

A: Loan amount=$106200Loan fee=$5200Interest rate=5%Period=30 yearsIn this, first three parts will be…

Q: Suppose one estimates that they can afford to repay £1200 a month for 25 years on a mortgage.…

A: Here, Monthly Payment is £1,200 Interest Rate (r) is 4.3% Compounding Period (m) is Monthly Time…

Q: 4 (5) Assume a 30-year mortgage loan for $250,000 for 30 years at an annual rate of 6%. What would…

A: The objective of the question is to calculate the fixed annual and monthly payments for a 30-year…

Q: Use Excel to solve this problem. An $11,000 mortgage has a 30-year term and a 6% nominal interest…

A: >Please refer to the below spreadsheet for calculation and answer. Cell reference was also…

Q: Which one of the following statements about a fixed-rate mortgage (FRM) loan is correct? a. The…

A: Fixed-rate mortgage Loan A fixed-rate mortgage loan is a loan taken for a home or real estate in…

Q: 5. A home buyer can afford to spend no more than $800/month on mortgage payments. Suppose that the…

A: The idea of the time value of money (TVM) holds that a quantity of income is valued sooner than it…

Q: Assume the following information for a home mortgage: Original loan amount = $240,000 %3D Annual…

A: Loan is repaid by paying off fixed amount every period. The periodic payment period can be monthly,…

Q: monthly

A: I would borrow a loan that is amortized quarterly.   The reason for this is based on the principles…

Q: Use an amortization table (Use Spreadsheet application such as Excel) that determines the monthly…

A: Loans are paid by the same fixed monthly payments that carry the interest and loan payments.In this…

Q: years? Use the solver. Clearly write the form

A: Mortgage loans are necessary for buying home because these are long term loans paid by equal monthly…

Q: What is the internal rate of return on a $3,000 loan to be repaid as $3,500 twoyears from now?

A: An internal rate of return is the metric used in financial analysis for estimating potential…

Q: A graduated payment mortgage (GPM) enables the borrower to have lower payments earlier in the…

A: Mortgage loan is the loan paid for the real property. Its purpose is to raise funds for buying…

Q: Consider a home mortgage of $200,000 at a fixed APR of 3% for 25 years. a. Calculate the monthly…

A: The series of payments discussed above is an annuity wherein an equal payment is made every month.

Q: When you purchase a home by securing a mortgage, the total paid toward the principal is your equity…

A: Time Period = 30 Years Frequency = Monthly Payment (360)

Q: How does compound interest make your money "work for you"? Multiple Choice It provides an interest…

A: Interest is that which is earned by the investor on his investment. There are two types of interest…

Q: Find the monthly payment needed to amortize principle and interest for the fixed rate mortgage. Use…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Please show how to solve a. b. and c. using the information below and Excel. Interest-only mortgage…

A: Solving for Interest-Only Mortgage with ExcelHere's how to solve parts a, b, and c of the question…

Q: Consider a home mortgage of ​$225,000 at a fixed APR of 3​% for 25 years.   a. Calculate the monthly…

A: In case of a home mortgage fixed monthly payments are made. The fixed monthly payment consists of…

Q: Annual loan payment = $47,100 Number of remaining periods = 6 Interest rate = 12% What is the book…

A: Payment = p = $47,100Number of Payment = n = 6Interest Rate = r = 12%

Q: What are the Effects of Maturity on Monthly Payments on Fully Amortizing Loans?

A: In fully amortized loan, total loan will be paid off by end of maturity i.e. loan term. Monthly…

Q: Consider a 30-year mortgage with a 5% interest rate and a 20% down payment. If you can afford a…

A: Equivalent Monthly Installment or EMI is the monthly installment of the loan repayment. The amount…

Q: Which mortgage would result in higher total payments? Mortgage A: $985 a month for 30 years Mortgage…

A: Total Payment = Monthly Payment * No. of months

Q: Consider a home mortgage of ​$17500 at a fixed APR of ​%6 for 15 years. a. Calculate the monthly…

A: When the lender lends a loan to the borrower, he charges an interest rate on the borrowed amount for…

Q: A family has a $142,293, 30-year mortgage at 6.6% compounded monthly. (A) Find the monthly payment…

A: Part (a): Calculation of monthly payment and interest paid: Answer: Monthly payment is $908.77…

Q: Which of the following is NOT typically a benefit of taking a 15 year mortgage instead of a 30 year…

A: 15 year mortgage enables a person to payoff the loan earlier as compared to 30 year mortgage. 15…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.