The buyers paid $6,125 for a 1 point origination fee and a 1.5 discount point fee, what is the amount of their loan? If the buyers are obtaining an 80 percent LTV, what is the purchase price of their new home?

Q: You get a $550,000 mortgage loan with 1¼ points. What dollar amount do you pay for points?

A: One mortgage point equal to 1 % of loan amount.

Q: s. Mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: When you purchased your house 4 years ago, you took out a 300000, 30 year FRM loan at 7.5%. You also…

A: Mortgage loans are secured loans and these loans make buying of home easy because paid by equal…

Q: Repay Principal and Interest on a $1000 mortgage. Annual Term of Mortgage (years) rate () (r) 10 15…

A: The mortgages are paid by the monthly payment that are paid by that carry the payment for interest…

Q: ou want to buy a home but not take out a mortgage. You want to buy it outright when you are able to…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: You want to buy a $210,000 home. You plan to pay $10500 as a down payment, and take out a 30 year…

A: The loan amount would be the remaining amount after deducting the down payment from the purchase…

Q: The Nguyens are thinking of buying a home for $121,000. A potential lender advertises an 80%,…

A:

Q: The lender charges three points to get the mortgage. How much do the points cost you?

A: Solution Calculated the points cost   Cost of one unit Home       = $200000 Less:25% Down…

Q: John wants to buy a property for $121,250 and wants an 80 percent loan for $97,000. A lender…

A: Here, To Find: Part a. Disbursed amount =? Part b. APR for the borrower after 30 years =? Part c.…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: If US dollars gets lower interest rates in the United States. How would this affect a fundamental…

A: There are two methods to calculate the future or forward currency exchange rates - Interest rate…

Q: using the maximum ratios for a conventional mortgage, how big a monthly payment could one afford if…

A: Conventional Mortgage: It is  any sort of home buyer’s credit that isn't offered or secured  by a…

Q: A borrower can obtain an 80 percent loan with an 8 percent interest rate and monthly payments. The…

A: The incremental cost of borrowing is the cost needed to pay over and above the cost of using one…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: Barbara and Jerry can afford a mortgage payment of $1, 500 per month. If interest rates are 3.25%…

A: Mortgage payment = $1500Interest rate = 3.25%Maturity = 30 YearsTo find: Amount to borrow.

Q: In addition to the UFMIP (up-front mortgage insurance premium), the owner-occupant borrower who…

A: Federal Home administration (FHA) imposes an additional insurance clause to mortgage loans in Loan…

Q: your home was recently appraised for $176,000. The balance on your existing mortgage is $111,500. If…

A: A home equity loan is a financial option that enables homeowners to borrow against the equity…

Q: You want to buy a house and received the following loan quotes. What is the incremental cost of Loan…

A: The incremental borrowing cost represents the effective interest cost that will be paid on…

Q: Please provide working to the solution for the question below: Anna and Bob have decided to buy an…

A: Solution:- When an amount is borrowed, it can either be repaid as lump sum payment or in…

Q: Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are…

A: STEP 1 MORTGAGE When you and a lender enter into a mortgage, the lender is granted the power to…

Q: The RentWay company advertises itself as “Rent to own program”. For example, you can rent a $180 TV,…

A: The concept of time value of money means that the value of money today is worth more than its value…

Q: (ou are applying for a conventional mortgage from the Americana Bank. Your nonthly gross income is…

A: Gross Income- A mortgage loan can only finance movable property. Land, trees, buildings, and…

Q: What is the cost of two points on the mortgage?

A: Information Provided: Selling Price = $125,000 Downpayment = 20% or $25,000 Loan amount = $100,000…

Q: need help with this question

A: Loan to value ratio is 80% and the cost of the house is $ 80,000.Thus loan amount = 80% * $ 80,000=…

Q: A borrower purchased a $250,000 house with 5 percent down payment taking a mortgage loan for the…

A: Value of Mortgage Loan =$250000×(100-5)%=$237500Coverage of Private Mortgage Insurance Cover =6% of…

Q: You plan to buy a $100,000 home using a 30-year mortgage obtained from your local credit union. The…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Q: gages, loans taken to purchase a property, involve regular payments at fixed intervals and are…

A: Loans are paid by fixed equal monthly payments and these payments carry the payment for interest and…

Q: You want to buy a home.  You can borrow 95% of the purchase price.  Assuming you can make a down…

A: To calculate the price of home we will use the below  formula   Home price = Down payment/(1-Loan to…

Q: Price Years Down Payment Rate Payment Interest in 127th Payment AENDETAI $100,000.00 30 20% 4.5%

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: You have saved $14000 for a down payment on a house. Your bank requires a minimum down payment of…

A: A down payment is a sum of money that the borrower contributes up ahead towards the cost of a loan…

Q: monthly

A: I would borrow a loan that is amortized quarterly.   The reason for this is based on the principles…

Q: John Lloyd and Izan want to buy a $138,000 home. They plan to pay 20% as a down payment, and take…

A: Price of house  $ 1,38,000.00 Down payment 20% Interest rate 4.15% Time period 30 years To…

Q: if a buyer makes a 15% down payment and obtains a $120,000 mortgage what is the sales price of the…

A: if a buyer makes a 15% down payment and obtains a $120000 mortgage. Required  What is the sales…

Q: Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are…

A: A mortgage indicates the sum borrowed to meet a specific purpose. Generally, mortgages are taken to…

Q: Person A has a take home pay of 3980 and wishes to spend only 1/4 of this pay on a monthly house…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: Assume a borrower is purchasing a property for USD 100,000 and faces two possible loan alternatives.…

A: CPM mortgages: CPM mortgages are Constant Payment Mortgages where the amount paid each month towards…

Q: You are taking out a new loan of $140,000 that includes an origination fee of 4.5%. How much money…

A: Given, New loan = $140,000 Origination fees = 4.5%

Q: John wants to buy a property for $127,500 and wants an 80 percent loan for $102,000. A lender…

A: The mortgage loans are the secured loans and these loans are paid by the monthly payments that carry…

Q: Calculate the total amount paid for Mortgage A. Calculate the total interest paid for Mortgage A.…

A: Home loan mortgages are paid on a  monthly basis.  During the initial years interest amounts are…

Q: Will they get the home loan? You have a gross annual income of $175,000 and have been pre-approved…

A: Back-End ratio shows proportion of monthly income used to pay off debt. Back End Ratio=Monthly Debt…

Renting Vs Buying

Renting means occupying a house for a period and paying an amount in exchange for such service. Renting does not require huge investments. Payments under renting are periodic and the amount is relatively low compared to EMIs.