Which of the following statements is true about 15-year and 30-year fixed-payment mortgages?   A. A 30-year mortgage will likely have an interest rate lower than that on a 15-year mortgage.   B. Borrowers pay more total interest over the life of a 30-year mortgage than on a 15-year mortgage assuming the same interest rate on both mortgages.   C. The remaining balance on a 30-year loan declines more quickly than on a 15-year mortgage with the same interest rate.   D. Both A and B are true.   E. Both B and C are true.   F. Both A and C are true.   G. All three (A, B and C) are true.

Warning: Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Several years ago Bill got a home mortgage of $137,000 with a term of 30 years at an APR of 9%. Use the Estimation Rule for Long-Term Loans to estimate his monthly payment. $ Compare this estimate with what the monthly payment formula gives. (Round your answer to the nearest integer.) The actual monthly payment is about $ greater than the estimated payment.

Phil Pittman is interested in a fixed-rate mortgage for $100,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 5.5% for the 15-year mortgage and 6.5% for the 30-year mortgage. a. What are the monthly principal and interest payments for each loan? b. What is the total amount of interest paid on each loan? c. Overall, how much more interest is paid by choosing the 30-year mortgage?

Consider the sale for which the lender quoted a mortgage capitalization rate at 9.0%. If the equity capitalization rate is 15.0%, and the loan-to-value ratio is 80.0%, what is the overall capitalization rate?   A.   10.2%   B.   13.9%   C.   24.0%   D.   The answer cannot be determined without the term of the mortgage.

不 Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate the reduction in the monthly payment by increasing the down payment by the amount specified, and the amount saved on interest over the life of the loan. Assume the mortgage is for 20 years and use the table to find the monthly payments Click the icon to view the table for the monthly payment Amount of Loan $169,000 Interest Rate OA $77.20, $18.528.00 OB. 557.28, $13,747.20 OC. $58.72, $14,092.80 OD. $66.88, $16.051.20 8% Down Payment $33,000 Increase in Down Payment $8,000 Table Anal Interest Rate 5% 6% Monthly payments on a $1,000 loan. Number of Years for the Loan 8% 10% 126 10 20 30 $29.53 $22.58 $10.12 $6.06 $4.77 29.97 23.03 1061 6.60 5.37 30.42 23.49 11.10 7.16 6.00 3134 2441 12.13 X36 734 32.27 25.36 13.22 9.65 8.78 33.21 26.33 14.35 1101 10.29 Print Done X

During the last three months interest rates have fallen, and you would like to take advantage of the lower rates that currently exist by refinancing.  Refinancing means you pay off the outstanding principal balance on your current mortgage with a new loan at the lower rates that currently exist.  If rates have fallen to 3.25%, how much would you save monthly if you refinance at the end of the second month? (assume you take out a new 20-year loan). Show your calculations.

Which of the following is NOT typically a benefit of taking a 15 year mortgage instead of a 30 year mortgage? Less total payments. Lower monthly payment Less total money paid back on the loan. Lower interest rate.

Which of the following statements regarding a 20-year (240-month) $225,000, fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs.) The outstanding balance declines at a slower rate in the later years of the loan's life. The remaining balance after three years will be $225,000 less one third of the interest paid during the first three years. Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant. Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant. The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.

A mortgage that allows the borrower to pay less than the interest due for a few year (A) negative-amortization mortgage.. B credit-default swap. C) traditional, thirty-year fixed-rate mortgage. D "liar loan".

Consider a $5,000,000, 10% rate, 30-year mortgage with constant annual payments, fully amortizing. What is the yield to maturity (YTM) of this loan under the following circumstances:   (a) No points   (b) Three points of disbursement discount (paid by the borrower)    (c) One point of disbursement discount (paid by the borrower)