can be replaced by a loan at an interest rate of 6% at a cost of 8% of the outstanding loan amount Should the home owner refinance? What difference would it make if the home owner expects to be in the home for only five more years?

Q: Roger has found a home to be purchase for $219,626 and has agreed to pay 30% down. Find the amount…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A landlord needs to update a rental house due to it's age, so it can be habitable again. If he h to…

A: Loans you take depends on the ability to pay back and that depends on interest rate and time period…

Q: A couple buys a $170000 home, making a down payment of 24%. The couple finances the purchase with a…

A: Purchase price = $170000 Down Payment= 24 % Finance For 15 years Rate = 3.35%

Q: Gabby is planning to buy a home.  She has some money for a down payment already saved.  She sees a…

A: Step 1). Monthly payment on the borrowing is calculated using following equation Monthly payment =…

Q: You borrow $560,000 to purchase a home. The loan rate is 8.95% and must be repaid in 27 years. What…

A: Compound = Monthly = 12Present Value of Payment = pv = $560,000Interest Rate = r = 8.95 / 12%Time =…

Q: If you plan to live in a home for only a few years, it is probably wise to pay points to lower your…

A: solution : correct answer is : FALSE explanation :               mortgage point is the amount point…

Q: Barbara and Jerry can afford a mortgage payment of $1, 500 per month. If interest rates are 3.25%…

A: Mortgage payment = $1500Interest rate = 3.25%Maturity = 30 YearsTo find: Amount to borrow.

Q: Suppose you are a property owner and you are collecting rent for an apartment. The tenant has signed…

A: The present value is the equivalent value today of future payments to be received in the future…

Q: A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: A couple borrows $935,000 for 7 years for the purchase of a vacation home at interest rate of 7…

A: The objective of the question is to calculate the annual payments on a loan and the reduction in the…

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: How would the payment change if Kimberly reduced the loan term to three years? Round your answer to…

A: Data given: Purchase cost (PV)=$3600 APR=16% n=3 year   Working Note#1 Monthly…

Q: To help with a down payment on a home, Jenny is going to invest. Assuming an interest rate of 1.67%…

A: Using excel PV function

Q: Amber received a 15 year loan of $245,000 to purchase a house. The interest rate on the loan was…

A: Answer information:Step 1:a. Monthly Loan PaymentWe can find the monthly payment using the loan…

Q: Lisa would like to buy some furniture for the new home. Good Home Furniture offered her the maximum…

A: The maximum furniture that Lisa can afford is equal to the present value of the maximum credit…

Q: A person needs ​$17,700 immediately as a down payment on a new home. Suppose that she can borrow…

A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: per for 48 Jasmin has found a car she wants to buy. The used-car dealer says months. If the interest…

A: To determine the PV of loan payments we can use an ordinary annuity formula. An annuity is a type of…

Q: Abigail received a 15 year loan of $280,000 to purchase a house. The interest rate on the loan was…

A: Mortgage loans are paid by equal periodic and fixed payments and these carry the payment of interest…

Q: Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments…

A: Present Value refers to the current value of the loan or mortgage amount if paid all at once on the…

Q: A landlord needs to update a rental house due to it's age, so it can be habitable again. If he has…

A: Loan: It represents the amount borrowed by the borrower from the lender. The lender charges…

Q: Emily received a 25 year loan of $295,000 to purchase a house. The interest rate on the loan was…

A: Mortgage loans are paid with equal and fixed monthly payments that include both the payment for…

Q: Kelly and Tim Jarowski plan to refinance their mortgage to obtain a lower interest rate. They will…

A: In the given question it is given that Reduce in payment = $60 a Month Closing cost of refinancing =…

Q: sky wants to purchase a new house that cost 1,440,000. The bank agrees to provide a loan to fixed…

A: We need to find monthly installment and compare that with the salary of 20000 per month. If monthly…

Q: Michaela buys a new car for $31,600. The simple interest rate is 5.6% and the amount of loan…

A: In simple interest there is interest on the principal amount only and no interest on interest in…

Q: argaret Foster wants to buy a new camper in 6 years. She estimates the camper will cost $6,400.…

A: Future value refers to the value of a current asset at some future date affected due to inflation…

Q: Anthony planned to buy a house but could afford to pay only $9,000 at the end of every 6 months for…

A: Here,Down Payment $   30,000.00Semi Annual Payment $     9,000.00Interest Rate5.70%Time Period in…

Q: You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you…

A: Simple interest is calculated by multiplying borrowed amount , interest rate and time.   Simple…

Q: Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: If you take out your mortgage on July 1, so your first monthly payment is due August 1, and you make…

A: First we are going to find the monthly mortgage amount by inputting the following values in a…

Q: She will owe $____ on the car immediately following the 18th payment. A. 18,858.19 B. 18,531.57…

A: Monthly payments refer to the set sum of money that a borrower must pay back on a loan each month.…

Q: Klipling wants to have $43257 for a down payment on a house ten years from now. She can either…

A: Future value refers to the value of a current asset at some future date affected by the interest…

Q: Suppose karen has $2000 each month that she can allocate between mortgage payments and retirement.…

A: Here, Interest Rate on Retirement Option is 5.5% per annum Compounding Period is Monthly i.e 12…

Q: a purchaser makes a 20% down payment on a new home and obtains a loan for the balance. The lender…

A: Discount points = 2 Loan origination fees = 1000 Down payment = 20% Mortgage = 80%

Q: A couple buys a $180000 home, making a down payment of 20%. The couple finances the purchase with a…

A: The monthly payment that the couple will make will remain fixed or the same throughout the loan…

Q: Mary would like to save at the end 5 years for a ire down payment on a car. a. How much should she…

A: A contract that allows one party to borrow funds, assets, or any other resource from the other is…

Q: A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero…

A: In a points system, the borrower can pay 1% of the loan amount for 1 point and have a certain %…

Q: Todd is able to pay $360 a month for 6 years to finance a car purchase.  a. If the interest rate is…

A: Per month payment=$360Number of months=6×12=72Rate per month=6% compounded monthly

Q: 5. Jenna received a 15 year loan of $375,000 to purchase a house. The interest rate on the loan was…

A: Loan amount  $                               3,75,000.00 Interest rate 5.10% compounded…

Factors Affecting Housing Decision