Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years; current loan balance: $400,000; current loan interest: 5.875%; remaining term on current mortgage: 15 years; new loan interest: 3.625%; new loan term: 15 years; cost of refinancing: $6,000. Assume that the opportunity cost is 10%. Should the borrower refinance

If we know that the interest amount we will owe at the end of a year is $500 on a loan of 5,500, our interest rate must be:

A fully amortizing mortgage loan is made for $109,000 at 6 percent interest for 20 years. Required: a. Calculate the monthly payment for a CPM loan. b. What will the total of payments be for the entire 20-year period? Of this total, how much will be the interest? c. Assume the loan is repaid at the end of eight years. What will be the outstanding balance? How much total interest will have been collected by then? d. The borrower now chooses to reduce the loan balance by $5,900 at the end of year 8. 1. What will be the new loan maturity assuming that loan payments are not reduced? 2. Assume the loan maturity will not be reduced. What will the new payments be? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate the monthly payment for a CPM loan. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Monthly payment

Problem: You are interested in a fixed-rate mortgage for $399,000 and need to choose the between options: a 15-year mortgage or a 30- year mortgage. The current mortgage rate is 3.75% for the 15-year mortgage, and 3.25% for the 30-year mortgage. Both require a 15% down payment. (Hint: make use of the amortization formula from Chapter 12). (a) What are the monthly principal and interest payments for EACH loan? Show your work. (b) What is the total amount of interest paid on EACH loan? Show your work. (c) Overall, how much more interest is paid by choosing the 30-year mortgage? Show your work.

4) I have an NOI of$172,400. The lender indicated that I can borrow funds at a 7.0% interest rate with a 25 year amortization and 5 year term at a 1.20 Debt Service Ratio(DCR). The lender will charge 2 points. a. What is the monthly payment? b.What is the APR (annual percentage rate) if fully amortized? C.What is the APR at the end of the loan term? d.What if I pay the loan off at the end of the second year, what is my APR? e.What if there was a prepayment penalty of 1.5% at the end of year 4, what is myAPR?

What size loan must we take today with a 14% compound interest rate to have end-of-year payments of $1400, $1320, $1240, $1160, and $1080 for the next five years, respectively? In other words, if you take out a loan today, and after making all five payments, above, the loan is paid off, what is the value of that loan? Answer:

If a consumer borrows a loan of $23, 000, and pay it off in 5 years, including the finance charges of $1, 000, What is the effective annual rate of interest?

A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate the difference in required monthly payments on a 30-year mortgage loan at a rate of 3.5% vs. a 15-year mortgage at a rate of 3.0%. Assume both mortgages are for $100,000 and require monthly payments.  Then, comment on what you notice and where do the "savings" come from?