Review the following scenario. Identify how much each lienholder wouldreceive. Mrs. Smith takes out a $450,000 mortgage loan to construct herhome. Unfortunately she loses her job and defaults on her payments,leading the lender to foreclose on her house. The lender only receives$375,000 at the foreclosure option. (Enter answers using exactly thisformat "$x,xxx.xx")$350,000 filed by mortgage lender in 2016$20,000 filed by Court for lawsuit in 2012$15,000 filed in 2018 for property taxes$10,000 filed by a contractor in 2014

In the event of foreclosure, lienholders on a property are entitled to receive proceeds from the…

Answered: Review the following scenario. Identify…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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. Points (OBJ. 4) Years ago, the Devons took out a 30-year mortgage on their vacation home. When they originally took out the loan, they paid the lender $24,000 in points. On September 1 of the current year, the Devons refinanced their $650,000 balance of the mortgage with another 30-year mortgage. To get a lower interest rate, the Devons paid the lender points totaling $13,000. At the time of the refinancing, the Devons had unamortized points from the first loan of $18,000. How much can the Devons deduct as points on their tax return for the current year?
The Nicols are buying a house selling for $245,000. They pay a down payment of $45,000 from the sale of their current house. To obtain a 20-year mortgage at a 6.5% interest rate, the Nicols must pay 3.5 points at the time of closing. a) What is the amount of the mortgage? b) What is the cost of the 3.5 points? a) The amount of the mortgage is $ b) The cost of the 3.5 points on the mortgage is $
9. Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for 30 years at 6%. a. What is Jason’s monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly payment $ b. What is the total interest cost of the loan? (Use the amortization worksheet on the financial calculator.) Total interest cost $
Maria takes out a 30-year mortgage at 5.5% to buy a house that costs $280,00. She must have a down payment of 3% of the purchase price. How much does she need for the down payment? The downpayment is money towards the purchase price. How much money does Maria need to borrow? When she closes on the Loan, Maria is required to bring her down payment, pay a 1% loan origination fee and pay additional costs of $900. How much money does Maria need for closing costs?
Your cousin and her partner have a combined gross income of $10,111 and monthly expenses totaling $3,205. They plan to buy a house with a mortgage whose monthly PITI will be $2,000. (a) What is your cousin and her partner's combined housing expense ratio? (b) What is their total obligations ratio? (c) For what kind of mortgage can they qualify, if any? (d) If they do not qualify for an FHA mortgage, by how much should they reduce their monthly expenses in order to be eligible? (Set up an equation and solve it.)
Required information [The following information applies to the questions displayed below.] On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $2.59 million by paying $290,000 down and borrowing the remaining $2.30 million with a 8 percent loan secured by the home. The Franklins paid interest only on the loan for year 1, year 2, and year 3 (unless stated otherwise). Note: Enter your answers in dollars and not in millions of dollars. Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. b. What is the amount of interest expense the Franklins may deduct in year 2 assuming year 1 is 2022? Deductible interest expense
Jasmine purchased a home in San Francisco near her best friend Sallie. The purchase price of the home was $ 2,000,000. However, Jasmine only financed 80% of the home value as she was able to secure the $400,000 down payment to help lower her monthly payments. What is her monthly payment if she financed at today's rate of 7.55% for a 15-year mortgage?
Mike Jones bought a new split-level home for$150,000 with 20% down. He decided to use Victory Bank for his mortgage. They were offering 13 3/4% for 25-year mortgages (11.85%). Provide Mike with an amortization schedule for two periods. 1. Portion to-- interest: ?? principle:??, Balance of loan outstanding: ?? 2. Portion to-- interest: ?? principle:??, Balance of loan outstanding: ??
Ronald and Samantha Brady recently had their condominium in Port Isaac appraised for $324,800. The balance on their existing first mortgage is $154,720. If their bank is willing to loan up to 75% of the appraised value, what is the amount (in $) of credit available to the Bradys on a home equity line of credit? $
1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80% coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 to repair. What compensation will the insurance company pay? 2. Using Table 19-5 and 19-6, find the annual premium for an automobile insurance policy for Sandra who has a good credit rating. She lives in Territory 1 and buys 50/100/50 coverage for her liability protection. Sandra's vehicle is Model Class 2 and is five years old. In addition to the liability coverage, she purchased comprehensive and collision insurance with a $250 deductible on comprehensive and a $500 deductible on collision. TABLE 19-5 Annual Automobile Liability Insurance Premiums Territory 1 Territory 2 Liability Limits BAD GOOD ОСС GOOD ОСС BAD 50/100/50 385 600 846 354 552 778 100/300/100 425 682 961 391 627 884 250/500/250 460 750 1036 423 690 953 500/1000/500 530 843 1208 488 776 1111 GOOD = good credit; OCC = occasional payments past…
2. Simple versus compound interest Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Heather deposited $1,700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years? O $3,865.80 O $5,731.65 O $1,882.93 O $266.60 Now, assume that Heather's credit union pays a compound interest rate of 9.8% compounded annually. All other things being equal, how much will Heather have in her account after 13 years? O $5,731.65 O $561.70 $1,866.60 O $3,865.80
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