The Nicols are buying a house selling for $235,000. They pay a down payment of $35,000 from the sale of their current house. To obtain a 15-year mortgage at a 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?

The Nicols are buying a house selling for $235,000. They pay a down payment of $35,000 from the sale of their current house. To obtain a 15-year mortgage at a 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?

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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The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man buys a house for $350,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 5 years. The interest rate on the debt is 10%, compounded semiannually. (a) Find the size of each payment. $ (b) Find the total amount paid for the purchase. $ (c) Find the total interest paid over the life of the loan. $
Donna wants to buy a house for $900,000.00. She makes a 15% down payment and borrows the rest by getting a 30-year mortgage. Her monthly mortgage payment is $3,803.75. What is the principal of her mortgage? What is the total she will pay on the loan?
2 . Please answer the whole answer there is more than one answer that needs to be answered
Ben buys a house. He obtains a $220,000, 30-year mortgage at 5%. Annual property taxes $1,800, property insurance $480 a year, house association fee $220 a month. Based on these items what is the total monthly mortgage payment?
A homebuyer bought a house for $250,000. The buyer paid 22 percent down. If the borrower took out a 30-year fixed-rate mortgage at a 7 percent annual interest rate, how much interest will the borrower pay over the life of the mortgage?
A couple wants to purchase a $170,000 house, and they have enough saved for a 5% down payment and money for other closing costs. The bank is offering a 30-year mortgage at 5.35% interest, compounded monthly. The couple has an annual after-tax income of $85,000 and other debts totaling $850 per month. Because their down payment is less than 20%, they are required to pay for private mortgage insurance, which costs 1% of the loan amount each year.(a) If the maximum debt-to-income ratio (total monthly debt divided by after-tax monthly income) is 43%, can the couple afford to purchase the home? (b) If the couple lives in the house for 30 years, what is the total amount paid for the house, including down payment, principal, interest, and private mortgage insurance?
Noor is buying a home with a $200,000 mortgage using a 5.5 percent, 30-year loan. How much of the first month's payment will go toward the principal if the payment per $1000 on this loan is $5.6779? O a. $917 O b. $219 O c. $0 O d. $538
wally bee purchased a home for $600,000 with a $150,000 down oayment. he financed the remainder with a 6% mortgage for 30 years. wallys bank has offered to lower the 6% interest rate on his 30 year loan to 5.50%. if wally will pay 1 7/8 points. what will the points cost wally?
Suppose you are interested in taking an FHA mortgage loan for $250,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully-amortizing mortgage loan is 5% and the term is 30 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP? A. $2,500.00B. $1,119.41C. $159.67D. $13.42
The Hills obtain a 30-year, $144,000 conventional mortgage at a 4.5% rate on a house selling for $180,000. Their monthly mortgage payment, including principal and interest, is $729.63. They also pay 2 points at closing. Determine the total amount the Hills will pay for their house over 30 years. The total amount is $ (Round to the nearest cent as needed.)
III. Assume compound interest is used to solve the following problems. 1. Stanley borrowed $4500.00 from his credit union to do some home renovations. The loan has an annual interest rate of 5.75% and an amortization period of 3 years. a. What is Stanley's monthly payment? b. Calculate the total amount he will pay over 3 years. G Calculate the finance charge on the loan. 2. Adele wants to buy a used car that costs $2900.00. She has $1100.00 saved up for a down payment. a. How much will Adele have to borrow to buy the car? b. She can get a loan at 6.50% per annum with an amortization period of 2 years. What will be her monthly payment? c. What will be the total she pays for the loan? d. How much will the car cost? 3. Calculate the monthly payment, the total amount paid, and the finance charge for the following loans: a $2000.00 at 8.00% per annum for 3 years; b. $10 000.00 at 6.25% per annum for 5 years; and c. $1500.00 at 3.75% per annum for 2 years. 4. Harley used her credit card to…
K The Nicols are buying a house selling for $345,000. They pay a down payment of $45,000 from the sale of their current house. To obtain a 20-year mortgage at a 4.5% interest rate, the Nicols must pay 2.5 points at the time of closing a) What is the amount of the mortgage? b) What is the cost of the 2.5 points? a) The amount of the mortgage is $ b) The cost of the 2.5 points on the mortgage is S C***

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