Exp22_Excel_Ch02_HOE - Townsend Mortgage Company Project Description: You are an assistant to Yui Matheson, a mortgage broker at the Townsend Mortgage Company. Yui spends days reviewing mortgage rates and trends, meeting with clients, and preparing paperwork. Yui relies on your expertise in using Excel to help analyze mortgage data. Today, Yui provided you with sample mortgage data: loan number, house cost, down payment, mortgage rate, and the length of the loan in years. She asked you to perform some basic calculations so that the output provided by her system can be checked to verify that it is calculating results correctly. You have also been tasked with calculating the amount financed, the periodic interest rate, the total number of payment periods, the percentage of the house cost financed, and the payoff year for each loan. In addition, you will calculate totals, averages, and other basic statistics. Furthermore, Yui asked you to complete another worksheet that uses functions to look up interest rates from a separate table, calculate the monthly payments, and determine how much (if any) the borrower will have to pay for private mortgage insurance (PMI). Steps to Perform:

A borrower has two alternatives for a loan: (1) issue a $360,000, 75-day, 6% note or (2) issue a $360,000, 75-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.   Calculate the amount of the interest expense for each option. Round your answer to the nearest dollar. $  ________________________ Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar. (1) $360,000, 75-day, 6% interest-bearing note: $___________________________ (2) $360,000, 75-day note discounted at 6%: $ _________________________

Jamison is looking at the historical prepayment for a passthrough security. He finds the following: mortgage balance in month 42 = $260,000,000 scheduled principal payment in month 42 = $1,000,000 prepayment in month 42 = $2,450,000   What is the SMM for month 42? How should Mr. Jamison interpret the SMM computed? What is the CPR for month 42?

Goal To use recursive sequence to determine the amount money owed on a loan after months Role You are a loan officer at a mortgage company. Audience Jim and Joan Miller are customers applying for a mortgage. Situation Jim and Joan Miller are borrowing $120,000 at 6.5% per annum compounded monthly for 30 years (360 months) to purchase a home. Their monthly payment is determined to be $758.48. Performance Task You need to present Jim and Joan with a report detailing the following: • Arecursive formula for their balance after each monthly payment has been made. • To do this, use the formula: a, = an-1 (1+r) – 758.48 A determination of Jim and Joan's balance after the first payment. Don't forget the interest affecting their payment! • Use a spreadsheet or graphing utility to create a table showing their balance after each monthly payment. • Determine when the balance will be below $75,000. • Determine when the balance will be paid off. • Determine the interest expense when the loan is…

A borrower has two alternatives for a loan: (1) issue a $420,000, 30-day, 6% note or (2) issue a $420,000, 30-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Calculate the amount of the interest expense for each option. Round your answer to the nearest dollar. $  fill in the blank 2 for each alternative. Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar. (1) $420,000, 30-day, 6% interest-bearing note: $  fill in the blank 3 (2) $420,000, 30-day note discounted at 6%: $  fill in the blank 4 Alternative 1  is more favorable to the borrower because the borrower receives more cash .

Write an appropriate word in the blank so that the resulting statement is true. A monthly mortgage payment is used to repay the principal plus interest. In addition, lending institutions can require monthly deposits into an account, an account used by the lender to pay real estate taxes and insurance.

First-time homeowners often use FHA loans to finance their home. Go to fha-home-loans.com and find out the current requirements to qualify for an FHA loan. They may differ slightly from that described in the book because the underwriting requirements frequently change. Summarize the types of loans that are currently available. What is the highest loan-to-value ratio that you could obtain?

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Annie's mortgage statement shows a total payment of ​$603.66 with ​$532.99 paid toward principal and interest and ​$70.67 paid for taxes and insurance. Taxes and insurance for three months were collected at closing.​ Now, after six months of​ payments, she is curious about the total in her escrow account. Calculate the amount for​ her, and explain the account. Question content area bottom Part 1 Calculate the amount for her and explain the account.  ​(Select the best answer​ below.) A. Assuming no​ monthly, quarterly or​ semi-annual tax or insurance withdrawals from the​ account, the account should total ​$636.03. An escrow account is a special reserve account used to accumulate the annual property​ (real estate) tax payments and​ homeowner's insurance premiums for the homeowner. B. Assuming no​ monthly, quarterly or​ semi-annual tax or insurance withdrawals from the​ account, the account should total ​$212.01. An escrow account is a special reserve account used to accumulate the…

The accompanying Homeownership spreadsheet contains a partially completed spreadsheet model for computing the monthly costs of home ownership. Complete the spreadsheet model by Inserting the formulas for monthly mortgage payment (B12), monthly property tax (813), monthly homeowner insurance premium (B14), monthly maintenance costs (B15), and total (B16) in the appropriate cells. Click here for the Excel Data File a. Is this a deterministic or stochastic model? Is this a deterministic or stochastic model?