When Sara Jean purchased her house 12 years ago, she took out a 30-year mortgage for $220,000. The mortgage has a fixed interest rate of 6% compounded monthly. (a) Compute Sara Jean’s monthly mortgage payments. (b) If Sarah Jean wants to pay off her mortgage today, for how much should she write a check? She made her most recent mortgage payment earlier today.

Q: (a) How much does she need for the down payment? How much money does Maria need to borrow? (b) What…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: A couple buys a $170000 home, making a down payment of 24%. The couple finances the purchase with a…

A: Purchase price = $170000 Down Payment= 24 % Finance For 15 years Rate = 3.35%

Q: Jeronica and Sandy have decided to purchase a cooperative apartment together. They have received a…

A: Given: Monthly payment = $592.40 Years = 30 Interest rate = 16.2% Loan amount = $42,500

Q: Adam purchases a house and gets a 20-year mortgage for $185,000 at 5.5% APR. In addition to the…

A: The objective of the question is to calculate the total monthly payment that Adam has to make to the…

Q: 5. Erin borrowed $200,000 fixed-rate 30-yr mortgage when mortgage rate was 4.5%. How much total…

A: Amortization refers to the systematic and regular repayment of loan and interest spread over the…

Q: Susan has a 25-year home mortgage of $211,340 at 4.75% interest and will pay $1,874 annual insurance…

A: monthly PITI payment consists of monthly mortgage,insurance and Tax.

Q: Janet is purchasing a new house for $315,000. Her credit union requires her to make a 20% down…

A: Using Excel PMT function

Q: The Brown family recently bought a house. The house has a 30 year, $165,000 mortgage with a nominal…

A: As per the given information: Mortgage for house - $165,000 Nominal rate of interest - 8% Payments…

Q: Chelsea and Bill are buying a house on a 30-year mortgage.  They can afford a $1200 per month…

A: Using excel PV function, to calculate purchase price of a house

Q: Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a)…

A: Present value of annuity is the sum of the present value of all the cash flow in the future.

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

A: Given, Initial loan amount (PV) = $350,000 Time (t) = 30 years Rate of interest = 0.06 compounded…

Q: Heather McIntosh recently purchased a home for $175,000. She put $22,500 down and took out a 25-year…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

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A: We need to use loan amortization formula to calculate monthly payment. The formula is  PMT…

Q: A couple buys a $200000 home, making a down payment of 19%. The couple finances the purchase with a…

A: Solution:- Given, A Couple buys a $200,000 home, making a down payment of 19% The couple finances…

Q: Helen plans to purchase a $394,000 house using a 15-year mortgage obtained from her local credit…

A:

Q: Dick and Jane Buell have purchased a home for $114,500. They will need to obtain a mortgage for 75%…

A: Price of Home =$114500 Amount Mortgage = 75% of Home Price                                = 75% *…

Q: Alec bought a home for $179,000. He had a $50,000 down payment and got a 30-year fixed rate mortgage…

A: Mortgage is a value which is borrowed from the external sources like banks for the particular period…

Q: Jino sold his house. In addition to cash, he took a mortgage on the house. The mortgage will be paid…

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: Donald and Barbara have 30-year $155,000 mortgage at 7.68% compounded monthly.     (a) What was…

A: Mortgaage loan = $155000 Time(n)              = 30 year interest (r)           = 7.68%p.a

Q: 15 years ago, Tammy borrowed $350,000 to buy a house. She has a 30 year, 10% fixed rate mortgage.…

A: Mortgage is a secured loan and in this home is collateral and this is paid by equal monthly…

Q: Jen Logan bought a home in Iowa for $110,000. She put down 20% and obtained a mortgage for 30 years…

A: Here, Particulars Values Price of a house   $ 110,000.00 Down payment (20%*$110,000)  $…

Q: (6) Marian has just purchased a house. She has a $400,000, 20-year mortgage with interest at an…

A: Loan Amount = 400,000 Time Period = 20 years or 240 months Rate = 4.5% Continuous Compounding

Q: 14. Francisco Lindor borrows $73,000 at 12 percent interest toward the purchase of a mortgage is for…

A: Annual payments are periodic fixed payments that include the payment for interest and payment for…

Q: a. What is the monthly payment of the mortgage? b. What is the outstanding balance of this mortgage…

A: We can determine the monthly payment by inputting the following values in a financial calculator. N…

Q: Alec bought a home for $202,000. He had a $48,000 down payment and got a 30-year fixed r mortgage at…

A: The PMT function is a type of financial function which helps to determine the total monthly payment…

Q: Alex has just obtained a 7-year fixed-rate mortgage to buy her first condo. The mortgage is…

A: Adjustable rate mortgage:-The interest rate on an adjustable-rate mortgage (ARM) is variable. An…

Q: Mye has a 15-year mortgage loan at a compounded annual interest rate of 9.3%. After making annual…

A: Given that: Annual Cash flow=P11600 N=7 Years=7*12=84 Months r=9.3% annually= 0.93/12 Monthly =0.775…

Q: Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20…

A: Cost = $930000 downpayment = 30%*$930000 = $279000 Loan = $930000-$279000 = $651000 Monthly interest…

Q: 15 years ago, Laura borrowed $424,000 to buy a house. She has a 30 year, 5. fixed rate mortgage. She…

A: When interest rate declines than it is advantageous to take another loan to fund and pay existing…

Q: George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5…

A: Mortgage loans are paid in equal monthly installments that carry the payment for interest and…

Q: Maria takes out a 30-year mortgage at 5.5% to buy a house that costs $280,00. She must have a down…

A: A mortgage is a loan given on a property in which the collateral is the property itself.

Q: will owe $6,050 to repay a personal loan she took out to go on vacation. The loan was for a term of…

A: In simple interest there is no interest on the interest and there is interest on the principal…

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A: Mortgage loans are paid by equal monthly payments that carry the payment for interest and payment…

Q: Celine has established that she can afford a weekly payment of $1,450.00. She would like to have a…

A: Mortgage amount refers to the money that is being borrowed by the borrower from the lender at a…

Q: Anthony planned to buy a house but could afford to pay only $9,000 at the end of every 6 months for…

A: Here,Down Payment $   30,000.00Semi Annual Payment $     9,000.00Interest Rate5.70%Time Period in…

Q: Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of the loan…

A: in this we have to find effective interest rate and than find out present value FACTOR.

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A: a) What is a growing equity mortgage?  A growing equity mortgage is a type of fixed interest loan…

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A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: A year ago, a newly married couple decided not to buy a house, and they were looking at a house with…

A: Since you have posted a question with multiple sub parts, as per answering guidelines we shall be…

Q: Bilbo Baggins has just purchased a home and taken out a $400,000 mortgage. The mortgage has a…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: arnie and beth litner recently bought a house for $425,000. They put 10% down as a down payment and…

A: The answer to the given question has been provided below in a detailed manner along with all the…

Q: Bill and Kim Johnson are purchasing a house for $252,000. Their Bank requires them to pay a 20% down…

A: Amortization refers to the regular and equal repayment of loan amount over a term of the loan. This…

Q: tacey borrowed $300,000 from a bank for buying an apartment three years ago. She has been paying the…

A: Mortgage loans are secured loans in which home is collateral and these are paid by equal monthly…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.