What are the monthly payments on the original loans ?(Round nearest to cent)
Q: You want to buy a house valued at $200,000. AFter a down payment, you can finance the house with a…
A: The annual percentage rate is the rate earned on the investment or paid on loan over the period of…
Q: Suppose you are buying your first condo for $180,000, and you will make a $15,000 down payment. You…
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Q: The Mendez family is considering a mortgage loan of $350,500 at an annual interest rate of 6.8%.…
A: The question can be solved in excel as follows:
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Q: Assume a selling price of $88,000, a down payment of $24,000, and a mortgage at 13% for 30 years. If…
A: Here selling price is 88,000 and down payment is 24,000 Hence loan amount = selling price - down…
Q: You've decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…
A: Mortgage Payment: It is the payment of mortgage amortization paid by the borrower to the lender.…
Q: You borrow $100,000 to buy a house; if the annual interest rate is 6% and the term of the loan is 20…
A: Present Value of annuity = P * {1-[1/(1+r)^n]/r} Where, r = rate of interest i.e. 6% n = no. of…
Q: Consider a GNMA mortgage pool with principal of $20 million. The maturity is 30 years with a monthly…
A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…
Q: You've decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…
A: Since you have asked multiple questions, we will solve the first one for you. If you want any…
Q: You are considering taking out a loan of 20,000 that will be paid back over 7 years with monthly…
A: Interest amount decreases and the principal paid amount increase as loan payments proceed further.
Q: You have just arranged for a $1,740,000 mortgage to finance the purchase of a large tract of land.…
A: Computation:
Q: Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and…
A: Installment is the amount of periodic payments a borrower has to make to its lender in order to pay…
Q: Assume you graduate from college with $32,000 in student loans. If your interest rate is fixed at…
A: given, P = $32000 r=4.9% m =12 (monthly compounding) n = 10 year
Q: Suppose that 10 years ago you bought a home for $170,000, paying 10% as a down payment, and…
A: Computation as follows: Down payment: Hence, the down payment is $17000. Mortgage loan: Hence, the…
Q: Suppose you take out a 30-year mortgage of $100,000 with a fixed interest rate of 5 percent. You…
A: given, p = $100,000 r = 5% m = 12 n = 30
Q: You are considering getting a mortgage for $260,000 that requires equal payments at the end of each…
A: A written agreement through which a lender gets the right to take the property that is put as a…
Q: Suppose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 years…
A: Original loan = $125,000 APR = 6% New loan APR = 5.2%
Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. c. If you pay…
A: formula for Monthly payment: PMT = P×rm1-1+rm-m×n where, p = loan amount r = rate m = frequency of…
Q: You want to purchase a house for $85,000, and you have $17,000 cash available for a down payment.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…
A: The question is based on the concept of amortization of loan in equal periodic installment.by…
Q: You took out a loan 10 years ago that had the following terms. Amount $1,200,000, rate 5.5% and 30…
A: Loan Amount = $1,200.000 Interest rate = 5.5% Time Period = 30 Years Refinance Fee = 5% After 10…
Q: maximum loan
A: Loan amount refers to the amounts which a person borrowed at any given time under the mortgage. It…
Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…
A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…
Q: Suppose you want to purchase a $ 210000 house. If you put 20% down and finance the rest in a 15 year…
A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…
Q: A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The…
A: a) Calculate the monthly payment as shown below: Hence, the value of the monthly payment is…
Q: Suppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 30 year…
A: The monthly payment can be calculated with the help of present value of annuity function.
Q: Suppose you purchase a home and obtain a 30-year fixed-rate loan of $145,000 at an annual interest…
A: Time Period = 30 years*12 = 360 months Loan Amount = 145,000 Interest% = 7.5%/12 = 0.625%
Q: Suppose you have budgeted $ 950 a month towards a mortgage. If you are offered a 30 year mortgage at…
A: Present value of annuity formula is applicable to find the mortgage loan amount for given mortgage…
Q: You plan to purchase a house for $400,000 and you will make a 20% down payment. You are evaluating…
A: A mortgage (or loan) with a fixed annual stated rate is the net amount of borrowings that a borrower…
Q: Suppose your gross monthly income is $5,600 and your current monthly payments are $525. If the bank…
A: Step 1: The calculation is:
Q: Please show working You get a 15 year, 3.5% fixed-rate mortgage with one point, borrowing $300,000.…
A: Assumption: since question doesn't specify the payment frequency, we will assume that the payments…
Q: Suppose you take out a 30-year mortgage for $ 225000 at 8.5% interest. The monthly payments on this…
A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…
Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.14% interest. Suppose…
A: We can determine the monthly payments using the PMT function in excel. The syntax is: PMT (rate,…
Q: a. The bank offers a 30-year mortgage with fixed monthly payments and an interest rate of 0.53% per…
A: Given information :- Loan amount = $620,000 Time period = 30 years or 360 months Monthly interest…
Q: If a house cost $110,000 and you put down 20% for a down payment and your interest rate is 3.5%…
A:
Q: Suppose you want to purchase a property for $205,000 and you have $30,000 to put down as a down…
A: An effective yearly yield is defined as the overall profit or return on a bond received by an…
Q: Suppose you purchase a house for $200,000.00 by getting a mortgage for $180,000.00 and paying a…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Martin has borrowed £250,000 to buy a house. The mortgage rate is 5% per year. How much more will…
A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…
Q: You plan on borrowing $320,000 for a mortgage and are considering the following two loan options: a…
A: Using excel PMT function
Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. If you pay $975…
A: According to the question, we need to find the time period in which the loan will be paid off. It…
Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…
A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…
Q: Suppose you take out a 30 year mortgage for $ 250000 at 4% interest. The monthly payments on this…
A: Mortgage a is long-term loan contract which requires the borrower to pay periodic payments with…
Q: You are borrowing $500,000 to buy a house. The interest rate is 3% compounded monthly. The…
A: Given:
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Solved in 2 steps
- 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 take out a 25-year $300,000 mortgage with an APR of 6%. You make payments for 5 years (60 monthly payments) and then consider refinancing the original loan. The new loan would have a term of 15 years, have an APR of 5.6%, 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) b. A short calculation shows that the unpaid balance on the original loan after 5 years is $269,796.26, which would become the amount of the second loan. What would the monthly payments be on the second loan? $(Round to the nearest cent as needed.) c. What would be the total amount you would pay if you continued with the original 25-year loan without retrancing? (Round to the…Suppose that you take out a 40-year $175000 mortgage with an APR of 6%. You make payments for 3 years and then you consider refinancing the original loan. The new loan would have a term of 15 years, have and APR of 5.7% and be in the amount of the unpaid balance on the original loan. The administrative cost of taking out the second loan would be $1700. What are the monthly payments on the original loan? What would the monthly payment of the second loan be? What would the total amount you would pay if you continued with the original 40-year loan without refinancing? What would the total amount would you pay with the refinancing?
- 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 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?3. Suppose you decide to purchase a $150000 home for $20000 down. A down payment is subtracted from your home’s value and therefore you owe $130000. Well to pay for this amount you will need a loan, so $130000 is the principal on your loan. Suppose the interest rate on a 30 year mortgage is 4.5%. What will your monthly payment be? Create an amortization table for this loan. How much will you pay on the loan if you pay off the loan as
- 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.A borrower can obtain an 80% loan with an 8% interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90% loan at an 8.5% rate with the same loan term. The borrower plans to own the property for the entire loan term. solve with finanical calucltor What is the incremental cost of borrowing the additional funds? How would your answer change if 2 points were charged on the 90% loan? Would your answer to part (b) change if the borrower planned to own the property for only 5 years?A borrower is purchasing a property for $200,000 and can choose between two possible loan alternatives. Loan A is a 90% loan for 25 years at 8% interest and 2 points and Loan B is a 95% loan for 25 years at 8.75% interest and 1 point. Assume the loans will be held to maturity, what is the incremental cost of borrowing the extra money? Assume that the loans will be repaid in 5 years. What is the incremental cost of borrowing the extra money? Rework parts (a) and (b) assuming the lender is charging 3 points on Loan A and 2 point on Loan B. What is the incremental cost of borrowing?
- Suppose you are buying your first condo for $190,000, and you will make a $10,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 3.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $808.28 $853.18 $527.78Suppose you purchase a house for $200,000.00 by getting a mortgage for $180,000.00 and paying a $20,000.00 down payment. (i). If you get a 30-year mortgage with a 7% interest rate p.a. compounded quarterly, what are the quarterly payments? (ii). What would the loan balance be at the end of the first year?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?
