Consider a 2-year, fixed rate mortgage with an original balance of $28,000 and an interest rate of 4.7%. Suppose right after the month 10 payment has been made, the interest rate declines by 2%. What would be the new monthly payment if the home-owner were to refinance with a new 2-year loan at the new rate?
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- Consider a 3-year, fixed rate mortgage with an original balance of $17,000 and an interest rate of 5%. Suppose right after the month 6 payment has been made, the interest rate declines by 3%. What would be the new monthly payment if the home-owner were to refinance with a new 3-year loan at the new rate? Round your answer to 2 decimal places (nearest cent).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: $Suppose you obtain a mortgage loan of $210,000 at an annual interest rate of 5.0%. How much less is the interest paid over the life of a 10-year loan than over the life of a 25-year loan? Round your answer to the nearest cent.
- Suppose that you get a 15-year mortgage for $100,000 at 6.75%.What is your monthly payment?(Fill in the blank below and round your answer to 2 decimal places.)Your monthly payment would be $______.Consider a mortgage loan where the periodic payment is 1 and the per period mortgage interest is 5%. For simplicity, the maturity of the loan is infinite. That is, the borrower has to pay the loan perpetually. The per period market interest rate is 10%. Calculate the market value of the loan. (Note: When an investor buys the loan, she can receive the value of one starting from the next period.)Suppose you take out a home mortgage for $160,000 at a monthly interest rate of 0.6%. If you make payments of $1200/month, after how many months will the loan balance be zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer. Graph the sequence of loan balances. Choose the correct graph below. O A. 160,000 its 125 months loan balance 150 Q Q The loan balance will be zero after 269 months. (Round up to the nearest month.) O B. loan balance 160,000 125 150 months Q O loan balance 160,000 260 290 months Q O D. 160,000 it loan balance 260 ¹290 months Ⓒ Q
- Suppose your gross monthly income is $5,600 and your current monthly payments are $525. If the bank will allow you to pay up to 36% of gross monthly income (less current monthl payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. b. How much will you pay in interest if you pay the minimum monthly payment each month?You have a mortgage of $120000 at j2 = 5%. You wish to make payments once every two weeks for 25 years to pay off the mortgage, with the first payment two weeks from now. What is the size of each payment? Answer: $
- Assume the monthly payment of a loan amount of $400,000 is $1450. How long will it take to retire the loan if the annual interest rate is 4% ? Use the equation, Monthly payment= Where : P = principal (the amount of your mortgage r = the annual interest rate y = length of the mortgage P∗r12 1−(1+r12 )−12 ySuppose that 12 years ago you bought a home for $120,000, paying 20% as a down payment, and financing the rest at 6.1% interest for 30 years. How much money did you pay as your down payment? How much money was your existing mortgage (loan) for? What is your current monthly payment on your existing mortgage? Note: Carry at least 4 decimal places during calculations, but round your final answer to the nearest cent. How much total interest will you pay over the life of the existing loan? This year (12 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $76,166 left to pay on your loan. Your house is now valued at $185,000. How much of the original loan have you paid off? (i.e, How much have you reduced the loan balance by?) How much money have you paid to the loan company so far (over the last 12 years)? How much interest have you paid…You have decided to buy a house. You can get a mortgage rate of 5.15 percent, and you want your payments to be $1,450 or less. How much can you borrow on a 30-year fixed-rate mortgage? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Mortgage amount