Consider a 20-year mortgage for $174,334 at an annual interest rate of 5%. After 8 years, the mortgage is refinanced to an annual interest rate of 2.6%. What are the monthly payments after refinancing?

Q: You have just taken out a 30-year mortgage on your new home for $120,000. This mortgage is to be…

A: Use financial calculator:The present value of mortgage = 120,000The future value when all the loan…

Q: nsider a 30 year mortgage for $310873 at an annual interest rate of 3.5%. What is the remaining…

A: Mortgage loans are common in buying homes because are easy to get and easy to pay be monthly…

Q: Calculate the monthly payment for a 15 year mortgage of $100,000 at 6% interest.  Solve for PMT

A: PMT(periodic payment) A periodic payment is a payment or deposit made at regular intervals.…

Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

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 size mortgage can you afford if you can make a monthly payment of $1,200 per month for 30…

A: Mortgage we can afford is present value of monthly payments

Q: You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each…

A: Nominal Interest Rate: It represents the rate of interest that does not take into consideration the…

Q: Compute the face value of a 30 year fixed rate mortgage with a monthly payment of $1,200, assuming a…

A: A mortgage refers to a covered loan borrowed to purchase a property with the property itself acting…

Q: Assume we have a $1 million 15 year mortgage with monthly payments beginning in exactly one month;…

A: We have a mortgage here. We need to find the monthly payment, pay rate and the accrual rate.

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: You take out a 30-year mortgage (360 months) with a face value of $200,000 and a stated annual rate…

A: When you take out a mortgage you have to make periodic constant payments towards that mortgage.…

Q: A borrower obtains a fully amortizing loan for $80,000 at 10 percent for 7 year. Payments are…

A: A mortgage is a loan that allows a buyer to acquire a house or other real estate property and repay…

Q: fixed-rate mortgage

A: Introduction: Fixed rate mortgages are home loans that carries a fixed rate of interest for the…

Q: You take out a 30-year mortgage, at a nominal annual rate of X%, with monthly compounding. Each…

A: An amortization schedule is a table or chart that displays the breakdown of periodic loan payments,…

Q: Consider a 30-year mortgage for $181,420 at an annual interest rate of 3.1%. What is the remaining…

A: The time period of the mortgage is 30 years the amount of  mortgage is $181,420 The annual interest…

Q: What will be the monthly payment on a home mortgage of $75,000 at 12% interest, to be amortized over…

A: Loan amount (P) = $75,000 Interest rate = 0.12 Monthly interest rate (i) = 0.01 (i.e. 0.12 / 12)…

Q: Consider a 3-year, fixed rate mortgage with an original balance of $30,000 and an interest rate of…

A: A mortgage is referred to a loan utilized for purchasing real estate, commonly a home, with…

Q: Consider a home mortgage of $125,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: Consider a 2-year, fixed rate mortgage with an original balance of $28,000 and an interest rate of…

A: Mortgage:A mortgage is a financial agreement between a borrower and a lender, where the borrower…

Q: A $127,000 mortgage has a 30-year term and a 10% nominal interest rate. (a) What is the monthly…

A: The amount that is deducted from your outstanding loan balance is known as the principal component.…

Q: What is the annual percentage rate ( APR) of the loan?

A: The annual percentage rate is an annual interest rate used to represent the cost of borrowing. It…

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

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: calculate the mortgage payment for a home mortgage price costing $ 280,000. Calculate the payment…

A: A mortgage is a kind of loan that a lender or financial institution offers to people or companies to…

Q: Consider a 3-year, fixed rate mortgage with an original balance of $17,000 and an interest rate of…

A: A mortgage is a loan utilized for purchasing real estate, commonly a home, with repayment spread…

Q: Consider a home mortgage of $225,000 at a fixed APR of 4.5% for 30 years. a. Calculate the monthly…

A: Mortgage type of loan is backed by some collateral  security against the loan. It is a secured loan.…

Q: What is the monthly payment on a mortgage of $275,000 with a 6.75% interest rate that runs for 25…

A: Compound = monthly = 12 Present Value = pv = $275,000 Interest rate = r = 6.75 / 12 = 0.5625% Time =…

Q: Determine the monthly payment if you take out a loan for $ 180000 with an annual interest rate of…

A: Loan amount (PV) = $180,000 Interest rate = 8.25% Monthly interest rate (r) = 0.0825/12 = 0.006875…

Q: Find the monthly payment needed to amortize a typical $220,000 mortgage loan amortized over 30 years…

A: COMPOUNDED MONTHLY RATE (5.3%/12) 0.441667% YEARS  (12*30) 360 PRESENT VALUE $220,000…

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: What is the monthly payment on a 30 year, $661,000 mortgage, with an interest rate of 3%, compunded…

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

Q: Solve the problem. If​ necessary, use the table of monthly payments below. Round your answer to the…

A: Mortgage Amount (PV) = $177,000Interest rate (rate) = 9%Term of Mortgage = 10 yearsNumber of…

Q: received a 20-year, $500,000 mortgage with a 12% annual interest rate (APR). What portion of the…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You are considering two payment options on a $500,000 20-year mortgage having an interest rate of…

A: Mortgage refers to the contract between borrower and the lender of the amount. The borrower owes…

Q: Compute the face value of a 40-year fixed-rate mortgage with a monthly payment of $1,000, assuming a…

A: The time period of the mortgage is 40 years Monthly payments are $1,000 The nominal Interest rate is…

Q: Consider a 20-year mortgage for $142,044 at an annual interest rate of 5.2%. After 8 years, the…

A: Original Time period of mortgage is $142,044 Annual interest rate is 5.2% Annual refinancing…

Q: Consider a 20-year mortgage for $118,929 at an annual interest rate of 4.1%. After 10 years, the…

A: Present value is the value of sum of all future payments made in respect of mortgage at current…

Q: The maturity of the balloon loan is 5 years, amortization period is 30 years, loan amount is $85,000…

A:

Q: Suppose that you are currently making monthly paymentson a $163,133.00 20-year mortgage at 3.84%…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: What is the effective annual rate​ (EAR) of a mortgage that is advertised at ​% ​(APR) over the next…

A: Effective interest rate is rate of return realized after considering the impact of compounding on…

Q: Consider a $100,000, 30-year, 6.2% mortgage with monthly payments. What portion of the payments…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: b. You have a $300,000 mortgage with a 3.6% annual percentage rate with monthly compounding and a…

A: The monthly payment on a mortgage is an annuity i.e. the payment amount remains the same for the…

Q: You buy a house for $230000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…

A: Given, Loan amount = $230,000 years =30 rate = 6%

Q: How much will the monthly mortgage payment be if you purchase a new condominium for $150 000 with an…

A: Mortgage/ Borrowings:  Borrowings are the loans taken from banks or non-banking financial…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.