m reported mortgage applications increased 9.9% due to a decrease in the rate on 30-year fixed-rate mortgages. Joe Sisneros wants to purchase a vacation home for $335,000 with 20% down. Calculate his monthly payment for a 20-

(Related to Checkpoint 6.3) (Determining the outstanding balance of a loan) Five years ago you took out a $250,000, 25-year mortgage with an annual interest rate of 11 percent and monthly payments of $2,450.28. What is the outstanding balance on your current loan if you just make the 60th payment? CTT If you just make the 60th payment, the outstanding balance on your current loan is $ (Round to the nearest cent.)

Some lenders offer loans with biweekly payments rather than monthly payments. Investigate the effect of this on home loans by finding the payment and total interest on a thirty-year simple interest amortized loan of $150,000 at 13% interest. (Round your answers to the nearest cent.) (a) if payments are made monthly payment     $   total interest     $  (b) if payments are made biweekly payment     $  total interest     $

Some banks now have biweekly mortgages (that is, with payments every other week). Compare a 20-year, $130,000 loan at 8.1% by finding the payment size and the total interest paid over the life of the loan under each of the following conditions. (Round your answers to the nearest cent.) (a) Payments are monthly, and the rate is 8.1%, compounded monthly. payment size $ total interest $ (b) Payments are biweekly, and the rate is 8.1%, compounded biweekly. (Assume a standard 52-week year.) payment size $ total interest $

A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment > 2 D TRENE VAR TVUNG S 2006- E - E

Some banks now have biweekly mortgages (that is, with payments every other week). Compare a 20-year, $130,000 loan at 7.5% by finding the payment size and the total interest paid over the life of the loan under each of the following conditions. (Round your answers to the nearest cent.) (a) Payments are monthly, and the rate is 7.5%, compounded monthly. payment size $   total interest     $   (b) Payments are biweekly, and the rate is 7.5%, compounded biweekly. (Assume a standard 52-week year.) payment size $   total interest     $

A homeowner took out a 15-year fixed-rate mortgage of $140,000. The mortgage was taken out 7 years ago at a rate of 7.4 percent. If the homeowner refinances, the charges will be $1,000. What is the highest interest rate at which it would be beneficial to refinance the mortgage? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. APR %

A borrower with a 645 credit score is buying a $449,481 home with 95% LTV financing. The percent annual premium from the private mortgage insurance (PMI) company is 1.43% for a 30% coverage policy. The borrower's monthly premium payment is? Note: the question is asking for the monthly premium only, not the loan payment + premium. (Input your answer rounded to the nearest whole penny and without the $ sign, e.g., 1000.01)

A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment

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?