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Q: maximum loan
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Solved in 4 steps
- 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 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?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 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 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 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?
- you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at 3.5% per annum. suppose that before you can make any payments you receive a pay raise so you can pay an extra 200 per month with your normal payment. how many payments are required to fully amortize the loan assuming the extra 200 is paid each month?Suppose you take out a 50-year $175,000 mortgage with an APR of 6%. You make payments for 2 years (24 monthly payments) and then consider refinancing the original loan. The new loan would have a term of 10 years, have an APR of 5.4%, and be in the amount of the unpaid balance on the original loan. (The amount you borrow on the new loan would be used to pay off the balance on the original loan.) The administrative cost of taking out the second loan would be $1500. Use the information to complete parts (a) through (e) below. a. What are the monthly payments on the original loan? (Round to the nearest cent as needed.)Suppose you have good credit and can get a 30 year mortgage for $100,000 at 5%. What is your monthly payment?
- If you take out an amortized loan of $33,000 with a 14 year term and 7.4% interest rate, what are the annual payments you need to make? Round to the nearest dollar.Suppose you take out a 30-year mortgage for $ 275000 at 8.5% interest. The monthly payments on this loan are $ 2114.51. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan?New length in years = How much will you save in interest by making the extra payments?Saving =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?