Five years ago, Diane secured a bank loan of $400,000 to help finance the purchase of a loft in the San Francisco Bay Area. The terms of the mortage was 30 years, and the interest rate was 8% per year compounded monthly on the unpaid balane . Because the interest rate for a conventional 30 year home mortgage has n ow dropped to 6% per year compounded monthly. Diane is thinking of refinancing her property. (round your answers to the nearest cent) a) What is Diane's current montly mortage payment? b) What is Diane's current outstanding balance? c)If Diane decides to refinance her preoperty by securing a 30 year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 6% per year compounded monthly, what will be her monthly mortgage payment? Use the rounded outstanding balance. d) How much less would Diane's monthly mortgage payment be if she refinances?

Five years ago, Diane secured a bank loan of $400,000 to help finance the purchase of a loft in the San Francisco Bay Area. The terms of the mortage was 30 years, and the interest rate was 8% per year compounded monthly on the unpaid balane . Because the interest rate for a conventional 30 year home mortgage has n ow dropped to 6% per year compounded monthly. Diane is thinking of refinancing her property. (round your answers to the nearest cent) a) What is Diane's current montly mortage payment? b) What is Diane's current outstanding balance? c)If Diane decides to refinance her preoperty by securing a 30 year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 6% per year compounded monthly, what will be her monthly mortgage payment? Use the rounded outstanding balance. d) How much less would Diane's monthly mortgage payment be if she refinances?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Similar questions

Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 6%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 2.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) What is Diane's current outstanding principal?$ If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 2.5 %/year compounded monthly, what will be her monthly mortgage payment?$ How much less will Diane's monthly mortgage payment be if she refinances?$
Five years ago, Diane secured a bank loan of $390,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 7%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 5.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) (a) What is Diane's current monthly mortgage payment? (b) What is Diane's current outstanding principal? (c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 5.5%/year compounded monthly, what will be her monthly mortgage payment? (d) How much less will Diane's monthly mortgage payment be if she refinances?
Five years ago Diane secured a bank loan of 300000 to help finance the purchase of a loft in the San Francisco Bay Area. The term of the mortgage was 35 years and the interest rate was 9% year compounded monthly on the unpaid balance. Because the interest rate for a conventional 35yr home mortgage has now dropped to 7% year compounded monthly, Diane is thinking of refinancing her property. Round all answered to the nearest cent. A) what is Diane’s current monthly mortgage payment? B) What is Diane’s current outstanding principal?
Four years ago, Emily secured a bank loan of $200000 to help finance the purchase ofan apartment in Boston. The term of the mortgage is 30 years, and the interest rate is9.5% per year compounded monthly. Because the interest rate for a conventional 30years’ home mortgage has now dropped to 6.75% per year compounded monthly,Emily is thinking of refinancing her property.a) What is Emily’s current monthly mortgage payment?b) What is Emily’s current outstanding principal?c) If Emily decides to refinance her property by securing a 30 years’ home mortgageloan in the amount of the current outstanding principal at the prevailing interestrate of 6.75% per year compounded monthly, what will be her monthly mortgagepayment?d) How much less would Emily’s monthly mortgage payment be if she refinances?
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 10 years ago for $61,760. The home was financed by paying 20% down and signing a 30-year mortgage at 8.1% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 120th payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive?
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 9 years ago for $64,386. The home was financed by paying 10% down and signing a 30-year mortgage at 9.6% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 108th payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive? Amount of loan: $ (Round to the nearest dollar.)
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 13 years ago for $64,875. The home was financed by paying 15% down and signing a 30-year mortgage at 8.1% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 156th payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive? Amount of loan: $ (Round to the nearest dollar.) View an example Get more help - Clear all Check answer Help me solve this B no in tv N AA 6,283 JAN 19
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 13 years ago for $61,752. The home was financed by paying 10% down and signing a 15-year mortgage at 8.4% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 15-year period. The net market value of the house is now $100,000, After making their 156th payment, they applied to the loan company for the maximum loan. How much (to the nearest dolar) will they receive? Amount of loan: $(Round to the nearest dollar)
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They purchased the home 11 years ago for 68,158. The home was financed by paying 15% down and signing a 30-year mortgage at 9.3% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After their 132nd payment they applied to the loan company for the maximum loan. How much ( to the nearest dollar) will they receive? Amount of the loan ____
Sarah secured a bank loan of $155,000 for the purchase of a house. The mortgage is to be amortized through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the unpaid balance. She plans to sell her house in 10 years. How much will Sarah still owe on her house? (Round your answer to the nearest cent.)$
Five years ago, Bob purchased an apartment in Tai Po of $2,000,000. He made a down payment of 30% and financed the balance with a 20 years' conventional mortgage to be amortized through monthly payments. The term is adjustable-rate mortgage (ARM) with interest of 8% per year compounded monthly. Currently, the interest rate for his ARM is 5% per year compounded monthly. Bob is thinking of refinancing his property by paying an extra amount of $500,000 now and to amortize the rest of the loan in the next 8 years. (a) What was Bob's monthly mortgage payment for his first 5 years? (interest is 8%) (b) What is Bob's outstanding principal now if he does not refinance his apartment? (interest is 8%) (c) What is Bob's outstanding principal now if he refinances his apartment by paying the extra payment? (d) What will Bob's new monthly mortgage payment be (after the reset) if he refinances his apartment? (interest is 5%)
A couple purchased a home 20 years ago for $200,000. The home was financed by paying 10% down andsigning a 30-year mortgage at 12% compounded monthly on the unpaid balance. The net market value of thehome is now $2,500,000, and the couple wishes to sell the house.(a) How much was the monthly loan payment?