Five years ago, the Kellmans purchased a house and took out a mortgage of $600,000 from the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 5-year term. The bank calculated their monthly payment should be $2,776. How much interest did they pay in the 2nd year of the mortgage? Question 1 options: $1,383.54 $15,955.66 $32,385.62 $2,770.71 $18,705.03
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Five years ago, the Kellmans purchased a house and took out a mortgage of $600,000 from the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 5-year term. The bank calculated their monthly payment should be $2,776. How much interest did they pay in the 2nd year of the mortgage? Question 1 options: $1,383.54 $15,955.66 $32,385.62 $2,770.71 $18,705.03
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- Assume Jenny took out a $400,000 mortgage to pay for her new house. The mortgage rate is 5.7%. It is a 25-year monthly constant payment, fully amortized mortgage. Find the balance at the end of year 12. Group of answer choices $124,508.1 $226,786.2 $275,492.6 $236,119.6K The Nicols are buying a house selling for $345,000. They pay a down payment of $45,000 from the sale of their current house. To obtain a 20-year mortgage at a 4.5% interest rate, the Nicols must pay 2.5 points at the time of closing a) What is the amount of the mortgage? b) What is the cost of the 2.5 points? a) The amount of the mortgage is $ b) The cost of the 2.5 points on the mortgage is S C***3. Sam and Mary purchased a two-bedroom town house for $599 000 with a 10% down payment. The mortgage is at 3.49% per year, amortized over 25 years. (Note: Mortgage is compounded semi-annually by law.) + a) Find Sam and Mary's down payment and mortgage amount b) Determine their monthly payment using TVM Advanced Calculator. Show all the entries in your c) Assume they decided to make a bi-weekly payment of $ 1500 instead of monthly. How many years would it take for them to pay the mortgage in full using the TVM Advanced Calculatore) d) Assume Sam and Mary makes monthly payment, and the interest rate remains constant. Use the FCÁC mortgage calculator to find the total payment, the total principle paid, and the total interest paid for a 5- year term and complete the table? Also, find their mortgage amount after the 5-year term e) Explain why changing the payment frequency from monthly to weekly reduces the total interest paid on the loan.
- Tom borrowed $80,000 at a rate of 6.5% from bank for his new house. This is a 30 year monthly paid fully amortized mortgage. By how much would he reduce the amount he owes in the first year? Group of answer choices 678 0 894 1120Mila Cabellero has taken a 20-year, $258,000 mortgage on her house at an interest rate of 6 percent per year. What is the remaining balance (or value) of the mortgage after the payment of the fifth annual installment? Multiple Choice $218,463.60 $145,56704 $133,073.52 $256,670.44K Bill and Kim Johnson are purchasing a house for $309,000. Their bank requires them to pay a 10% down payment. The current mortgage rate is 8%, and they are required to pay one point at the time of closing. Determine the total amount Bill and Kim will pay for their house, including principal, interest, down payment, and points (do not include taxes and homeowners' insurance) for the following lengths of their mortgage. a) 10 years b) 20 years c) 30 years CAT
- A couple has decided to purchase a $180000 house using a down payment of $20000. They can amortize the balance at 7% over 20 years. a) What is their monthly payment? Answer = $ 1240.48 b) What is the total interest paid? Answer = $ 137714.79 %3D c) What is the equity after 5 years? Answer = $ 208983.88 d) What is the equity after 15 years? Answer = $You borrow $675,000 to buy a home using a 30-year mortgage with an interest rate of 3.675 percent and monthly payment. Calculate the interest portion of the 20th payment. Disregard property taxes and mortgage insurance. Group of answer choices $2,006 $1,999 $2,002 $1,818 $1,821Joe Levi bought a home in Arlington, Texas, for $160,000. He put down 30% and obtained a mortgage for 30 years at 6 1/8 %. What is the difference in interest cost if he had obtained a mortgage rate of 5 1/2 %? (Use Table 15.1.) TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 5.5 0.45833 10.85263 8.17083 6.87887 6.14087 5.67789 5.1577 5.625 0.46875 10.91467 8.23732 6.94966 6.21575 5.75656 5.24302 5.75 0.47917 10.97692 8.3041 7.02084 6.29106 5.83573 5.32888 5.875 0.48958 11.03938 8.37118 7.09238 6.36682 5.91538 5.41525 6 0.5 11.10205 8.43857 7.16431 6.44301 5.99551 5.50214
- A couple decides to switch from monthly to accelerated weekly payments on their 20-year $250,000 5% fixed-rate mortgage. How much total interest would they save? Round to the nearest dollar. a) $15,560 b) $20,793 c) $21,499 d) $24,872Assume an elderly couple owns a $400,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $300,000 RAM. The loan term is 15 years, the contract is 5.25%, and payments will be made at the end of each month. What portion of the loan balance at the end of year 15 represents interest (rounded to thousands)? Excel a) $95,000 O b) $102,000 O c) $174,000 d) $198,000 e) $205,000The Howe family recently bought a house. The house has a 30-year, $162,902.00 mortgage with monthly payments and a nominal interest rate of4.4 percent. What is the total dollar amount of interest the family will pay during the first 3 years of their mortgage? (Assume that all payments are made at the end of the month.)Group of answer choices$23,976.84$19,976.84$22,976.84$21,976.84$20,976.84