Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. If you pay $975 per month on your mortgage instead, in how many years will you pay off the loa
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Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. If you pay $975 per month on your mortgage instead, in how many years will you pay off the loan?
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- Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. c. If you pay $975 per month on your mortgage instead, in how many years will you pay off the loan?Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this loan are $ 1621.50. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan? How much will you save in interest by making the extra payments?
- Suppose you take out a 30 year mortgage for $ 225000 at 6% interest. The monthly payments on this loan are $ 1348.99. If you pay an extra 20% per month on your mortgage, how soon will you pay off the loan?Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. b. How much will you pay in interest if you pay the minimum monthly payment each month?Suppose you take a 30-year fixed-rate mortgage loan for $600,000 with a mortgage rate of 6%. How much do you still owe on the loan after 15 years?
- Suppose you have good credit and can get a 30 year mortgage for $100,000 at 5%. What is your monthly payment?Suppose you take out a 30 year mortgage for $ 250000 at 4% interest. The monthly payments on this loan are $ 1193.54. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan? How much will you save in interest by making the extra payments? If you put $ 1193.54 per month into an annuity earning 7.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?Suppose you intend to purchase a house worth $239,900 with a 30-year fixed rate mortgage. You have a down payment of 15%. (a) How much are you planning to finance? (b) Find the monthly payment needed to amortize the loan, at a rate of 2.4% compounded monthly. (c) Approximately how much of the loan will remain after 12 years?
- Suppose you purchase a house for $200,000.00 by getting a mortgage for $180,000.00 and paying a $20,000.00 down payment. If you get a 30-year mortgage with a 7% interest rate p.a. compounded quarterly, what are the quarterly payments? What would the loan balance be at the end of the first year?Suppose a bank offers you an 8% interest rate on a 30-year mortgage to be paid back with monthly payments. Suppose the most you can afford to pay in monthly payments is $1800. How much of a mortgage could you afford?You need a loan of 250000 to buy your first home. The bank offers a 30 year fixed-rate mortgage with an APR of 4.16% or a 15 year fixed-rate mortgage with an APR of 3.22%.What will your monthly payments be for the 30-year mortgage? How much will the total interest be for the 30-year mortgage? What will your monthly payments be for the 15-year mortgage? How much will the total interest be for the 15-year mortgage?